Global hotels set to boost sector with investments

In 2007, when Nairobi had just over 2,000 quality rooms, major hotel chains such as the Kempinski Group of Germany, the Rezidor Hotel Group of Belgium, Accor of France and Prime Properties from South Africa were already eyeing the market with a view to developing new properties or signing management contracts with existing ones.

Their impending entry into the market was welcomed as a means to address the shortage in bed capacity that had long stressed the sector as business and conference travel increased.

So far only the Rezidor Hotel Group has entered the market with its hotel - the Raddisson - expected to open its doors in 2012.

Other properties are also under construction and are projected to increase the number of quality rooms by 1,000 units in the next two years.

These include the Sankara in Westlands, Weston near Wilson Airport, and the Simba Group on Waiyaki way among others.

Bed capacity

The opening of Crowne Plaza, Ole Sereni, and Tribe over the last two years has also helped increase bed capacity in the city.

South African hotel chain Southern Sun will take over the Holiday Inn from August 1 and will invest over Sh80 million on refurbishing the property.

“In cities new properties generate more business for the destination so we will be able to maintain our occupancy rates,” said Holiday Inn general manager Paul Norman.

Outside of Nairobi there has been increased activity in Kenya Wildlife Service-run parks as they invite investors to put up eco-lodges in some of the country’s leading parks.

At least 13 new lodges are expected in the Tsavo Conservation Area and Impala Sanctuary.

The Serena Group of Hotels is developing new high-end lodges in Elementaita and Laikipia.