Sh3.2 billion hotel raises Nairobi’s conference profile

Nairobi’s status as a conference and business travel hub has got a major boost with the official opening of the 156-room Sankara Hotel on Thursday.

The Sh3.2 billion establishment located in upmarket Westlands hopes to cash in on a resurgent tourism sector and a shortfall of bed capacity in the city.

“We need more investments like this,” said Tourism minister Najib Balala at the opening of the hotel owned by The Grenadier Group, a Kenyan private investment company.

Positive response

Since opening its doors in August, the hotel has witnessed booming business, mainly driven by the major conferences and a curious domestic market sampling the new product.

Mr Rohan Patel, a director, said the location of the property as well as the demand for beds and meeting rooms in the city have kept the hotel busy.

“The response has been positive and we are looking to break even earlier than anticipated,” he said.

In the past three years, the city has got at least 590 new beds with the opening of new properties like the Tribe, Crowne Plaza and Ole Serani.

This has pushed the number of beds to at least 3,000. This is set to rise as more investors look to tap into the Kenyan tourism market.

Local investors Simba Group are putting up a hotel along Waiyaki Way while the global hotel chain Rezidor of Belgium set to open up a Raddison in Upper Hill in 2012.

South Africa’s Don Suite Hotels is the latest investor looking for opportunities in the country as a major gateway to East Africa.

Speaking to Business Daily last month, the group’s executive director, Mr Rob William, said the firm was looking to take over existing properties through management contract, joint ventures or marketing.

The new properties are expected to increase competition though industry players say the continuous demand for more rooms provides more opportunities.

Mr Balala asked the industry to continue re-investing to keep the standards high and remain competitive.

Key players in the hotel industry include the Intercontinental Hotel, Fairmont Norfolk Hotel, Nairobi Serena Hotel, Hilton Hotel, Safari Park Hotel, Windsor, Laico Regency, Sarova Stanley, Holiday Inn, Nairobi Safari Club, Sarova Panafric and Panari Hotel.

There has been a marked increase in the number of boutique hotels and smaller more homely units in the city.

Kenya’s tourism sector is just coming out of a major slump following a post-election violence in 2008 compounded by the global financial crisis last year.

Increased marketing and moving to new markets has seen the sector recover with 2010 expected to be the best performing year.

The Kenya Tourist Board (KTB) says international arrivals stood at 701,691 in August compared to 611,674 last year.

Over one million international visitors are expected by the close of the year.

Earnings stood at Sh48.5 billion as of June 2010, compared to Sh21 billion during the same period last year.

Industry players say that earnings in the sector could reach Sh100 billion.

The growth has mainly been driven by business, conference, sports and safari tourists as the beach market still struggles.

“Beach tourism is down 20 per cent,” said Mr Balala.

pmaina@ke.nationmedia.com