The Heron Portico Hotel on Milimani Road in Nairobi. PHOTO | FILE
A Kenyan-owned four- star hotel has announced a Sh1 billion buyout of a Westlands-based rival.
The Heron Portico, which is managed by Indian hospitality group Sarovar Hotels & Resorts, says the acquisition of Zehneria Hotel in Nairobi’s Westlands will help it penetrate the growing middle class market and expand its market share in conference tourism and hospitality industry in Kenya.
The Heron Portico financed 80 per cent of the purchase price using debt while the rest is self-financed.
“I’m glad to announce extension of our partnership with Sarovar through our acquisition of Zehneria Hotel. I’m pleased, Sarovar has consented to it,” said Karim Teja the Chairman and shareholder of The Heron Portico, a family-owned business which is part of a multi-million shilling empire.
The Heron Portico has over the years undergone three name and ownership changes. It was at first known us Heron Hotel, then Heron Court Hotel and now it’s The Heron Portico.
Business travel has picked up in Kenya, amid decline on leisure travel. Mombasa’s tourism and leisure outlets have been adversely affected by terrorism attacks with many hoteliers closing shop.
Insecurity and travel advisories from Kenya’s traditional tourists markets like the United Kingdom has been blamed for the decline of tourists’ arrival in the country.
However, hoteliers are seeing business travel as a new source of revenue. More than five hotels targeting business travellers and conference tourism has been opened up in the past three years.
