Pride Inn Group of Hotels which operates a chain of seven hotels in Nairobi and Mombasa, has been taken to court for failure to honour lease payments of one of its branches, Eden Rock Hotel located in Malindi.
The owner of Tropicana Hotels Limited, Salim Sultan Moloo, claimed he leased Eden Rock Hotel to Pride Inn Hotels but the tenant cancelled the contract without informing him.
Mr Moloo stated that Pride Inn Hotels began defaulting payments in 2012 adding that the debt stood at Sh69.35 Million as at May 2016, but carried an interest rate of 26 per cent per annum.
“More than four years have passed since the undertaking to pay the debt was given by the company to the petitioner and more than three months have passed since the statutory demand was issued and received but the company has failed to satisfy the whole debt or part thereof,” Mr Moloo stated in court papers.
He added, “The petitioner therefore humbly prays that the company, PrideInn Hotels & Investments Ltd be wound up by the court.”
Sultan stated in the affidavit that the debt continues to accumulate with each passing day.
The matter will be heard on June 12.
