Pride Group to open Coast hotel amid security fears

What you need to know:

Pride Inn will be a three-star facility that can accommodate 2,000 people. Based at Shanzu, it is a 280-room hotel.

The Pride Group is set to open a 280-room hotel at the Coast in February, despite the gloom in the industry prompted by insecurity fears and international travel advisories.

The three-star Shanzu PrideInn Hotel will have a conference facility with a capacity to accommodate 2,000 people.

This will be the seventh PrideInn Hotel to be opened in the country and the fourth one at the Kenyan Coast in a span of three years since the group ventured into the hotel business.

“We are investing Sh2.5 billion in Shanzu and are confident the hotel will do well,” said Anthony Ngunga, the CEO of PrideInn Hotels and Conferencing at a media briefing in Nairobi Tuesday. Mr Ngunga said the expansion will be funded from the group’s internal cash reserves.

Tourist numbers to the Coast have been on a downward trend following random violent attacks that saw some embassies issue travel advisories to their citizens. According to the Kenya Tourism Board, the tourism sector suffered a four per cent decline in international arrivals between January and May as insecurity incidence heightened.

The figure has, however, been disputed by NSE-listed hospitality group Serena, which estimated the fall at between 30 and 50 per cent compared to last year. Mr Ngunga said the security threats at the Coast coupled with the travel advisories are just “passing clouds” and predicted the region will soon resume its status as a preferred tourist destination.

Kisumu hotel

“Running away from the Coast will not solve a thing. The solution is to stick around and work through it to find sustainable remedies,” he said. The group is set to open another hotel in Kisumu between December and January 2015 worth Sh300 million as part of its immediate expansion plans.

Businesses under the Pride Group include PrideInn Hotels and Conferencing, Glory Tours and Safaris, Glory Driving School, Glory Rent a Car, Juice Factory, Cake City, Pride Exhibitions, Royal Kitchen and Pride Centre.

The group is restructuring its management and is moving away from running as a family-owned business. Hasnain Noorani, the Group CEO, said in future, “we want to franchise the brand to the rest of Africa and Europe.”