The famous InterContinental Hotel Nairobi Branch is set to close its doors with all employment positions set to be scrapped off.
In a notice released by the InterContinental Hotels Corporation Limited, the conglomerate detailed that all positions would be declared redundant in 45 days.
The company cited operational reasons as the main cause of their closure.
"InterContinental Hotels Corporation Limited Kenya (IHCL) is considering a permanent closure of InterContinental Nairobi and winding up its operations in the Republic of Kenya.
"As a consequence of such intended winding up, all employment positions would become redundant," an excerpt of the notice reads.
It also asked employees to raise concerns in relation to the redundancy process through the stipulated communication channels.
InterCon did not clarify whether it was affected by the Covid-19 pandemic, which has largely affected the hospitality industry.
In February 2019, a report by a local daily detailed that the hotel was facing closure or auction over debt accounting to more than Ksh700 million.
“We wish to bring to your attention the following facts. The company is facing financial challenges to the extent that it cannot meet its obligations as they fall due,” a letter dated February 7, 2019 from Mr Jonah Orumoi, the Chief Executive of Tourism Finance Corporation (TFC) read.
In May 2020, Fairmont announced the indefinite closure of two of its luxurious hotels in the country, The Norfolk Hotel in Nairobi and the luxurious Mara Safari Club citing the adverse effects of the Covid-19 pandemic on the hospitality industry as the key reason.
All employees were sent home after 116 years of operation. Saudi Prince Al-Waleed bin Talal later struck a deal to sell off his stake in the five-star hotel to a Nepalese billionaire.
"There is nothing we can do about this current situation. We only employ people when the economy is better and businesses are thriving. The crisis has affected all industries and not hospitality only. If someone looks at his business model and sees that the best way is to shut down, then we have to respect those decisions," Mike Macharia, the CEO Hotel Keepers Association stated while speaking with Kenyans.co.ke.
