Markets & Finance

Fairview owner to build Sh2bn hotel in Runda

hotel

An artist’s impression of the City Lodge Hotel that is set be built at Two Rivers in Runda. PHOTO | BD CORRESPONDENT

A South African hotel group that owns Fairview Hotel is putting up a Sh2 billion three-star hotel at Centum’s Two Rivers mixed development off the Eastern bypass in Runda.

City Lodge Hotel Group listed on the Johannesburg Stock Exchange said the groundbreaking for the 170-room hotel is expected in January next year with the construction expected to be completed by October 2016.

The hotel will be the first constructed by City Lodge in East Africa. It acquired Fairview Hotel in 2013.

“This will be the first time that we are developing a green-field hotel in the region, also illustrating our optimism about the prospects for the Two Rivers development and the high profile status and draw-card potential it will have in Nairobi and further afield,” said the Group chief executive Clifford Ross in a statement.

The planned hotel is part of the group’s expansion into East Africa whose economies have been growing fast. Expansion will see City Lodge put up $23 million (Sh1.94 billion) hotel in Dar-es-Salaam and hotel’s management said it expects more hotel developments in the regional market too.

“Our international business development team has been examining growth opportunities in East Africa for the past couple of years and we believe that this investment will act as a catalyst for other hotel developments we are considering in the region,” said Mr Ross.

City Lodge is also looking for opportunities in Kampala, Maputo, Windhoek and Lusaka. The planned hotel is also a first for Centum, who have been in search of international hotel brands for its Two Rivers development.

“Centum is proud and excited to welcome the City Lodge Hotel Group to its Two Rivers development. It is notable that this will be the first City Lodge-branded hotel outside Southern Africa, and this marks a great achievement not only for Centum but for Nairobi and Kenya,” said Centum chief executive James Mworia.

Centum previously said Two Rivers will have a three- and five-star hotels.

The NSE-listed firm is in talks with other brands that are looking to setting up as tenants in Two Rivers by putting up a hospital, residential houses and offices.

French retail giant Carrefour is the other international brand that has confirmed that it will have presence in Two Rivers.

The growth of Nairobi as a regional hub is attracting a host of local and international investors who are putting up hotels and restaurants catering for business travellers. Tamarind Group is constructing a hotel next to its flagship Carnivore Restaurant in Nairobi to cater for business travellers.

“One of the developments will be a hotel next to the Carnivore Restaurant Nairobi, near Wilson Airport to cater to both international and regional business travellers. Groundbreaking for the hotel is set to take place by third quarter of 2014,” said Tamarind Group in June.

Grenadier Ltd, the holding company of Sankara Hotel Group, is constructing a mixed development in Runda, consisting of a hotel targeting business travellers and diplomats.

The Premier, a four-star 144-room hotel is coming up in Embakasi and is expected to open its doors in 2015.

It will be managed by Sarova Hotels & Resorts, an India-based hotel management firm.