Companies

Cement firm director in deal with Indian hotel chain to open JKIA Sarovar outlet

HOTEL

Artist’s impression of Lazizi Premier Hotel in Nairobi to be located near JKIA. PHOTO | COURTESY

Indian hotel chain Sarovar has said it plans to open an airport hotel in September, targeting travellers in need of accommodation and recreation at the Jomo Kenyatta International Airport.

The Mumbai-based hotelier said the upcoming Lazizi Premiere Hotel, located near JKIA along Airport North Road, will be marketed to transiting passengers, airline crews and business executives on the go.

Passengers transiting through JKIA and flight crews are forced to battle Nairobi’s choking traffic jams to access the airport, making the new facility a convenient alternative.

“The hotel is primarily aimed at business and transient guests who need to stay within the immediate proximity of the airport for their own convenience. Airline crews will also be accommodated in the hotel, as it is minutes away from the terminal buildings,” said executive director of Sarovar Hotels & Resorts Ajay Bakaya.

Lazizi Premiere, set on a one-acre plot, is owned by businessman Kiran Patel who is a director of cement firm Cemtech.

Mr Patel declined to reveal the cost of putting up the hotel but said construction works should be finished by March to be followed by fittings and furnishing.

Sarovar, which operates more than 70 hotels globally, will run Lazizi Premiere through a management contract.

Sarovar said it was attracted by Nairobi’s higher returns on investment. The firm expects Lazizi Premiere to break even in its first year of operation, underlining the lucrative nature of airport hotels.

“We expect to make gross operating profit in the first year of operation,” said Bakaya in an interview with the Business Daily.

The 144-room Lazizi Premiere will increase Nairobi’s bed capacity in tandem with growing demand for accommodation and meeting rooms due to the city’s status as the regional hub for many multinationals and UN agencies.

The four-star airport hotel also features three conference rooms targeting business meetings as well as a pool, spa, gym, coffee shop, bar and a café where guests can while away time as they await their flights.

There are two other global hoteliers seeking to open airport hotels around JKIA, underlining the airport’s stature as a regional aviation hub.

READ: Global hotel brands jostling for Kenyan space

JKIA handles an average of 0.5 million passengers monthly. International travellers — the captive market for airport hotels — make up three quarters of the total passenger traffic according to data from the Kenya Airports Authority.

Hilton Garden Inn is under construction and is expected to open by the end of the year. The 171-guest room and suites hotel is located just two kilometres from JKIA on Mombasa Road, and is also eyeing transiting visitors.

Four Points by Sheraton is also putting up a 194-room airport hotel in Nairobi, scheduled to open in January 2017.

This will mark the entry of the Sheraton brand, owned by New York Stock Exchange-listed Starwood Hotels and Resorts.

Airport hotels also profit from events such as flight delays, reschedules or cancelled journeys which at times force airlines to offer accommodation to affected passengers.

Sarovar currently manages three hotels in Africa namely Heron Portico and Zehneria Portico both in Nairobi and New Africa Hotel and Casino in Dar-es-Salaam.

“Nairobi being the hub of East Africa offers a launch pad for our expansion and growing our footprint in the African region,” said Mr Bakaya.

He added that Sarovar plans to add four more hotels in East Africa in the near term, with the first coming up in Juba, South Sudan.

Other global hoteliers seeking to enter the Kenyan market include Pullman, Park Inn, Tune Hotels, Ramada, and Mövenpick.