Mumbai-based hotelier Sarovar plans to open its first-ever budget hotel under the Hometel brand in Nairobi after signing a deal with a city lawyer to put up the facility.
The upcoming Tetezi Hometel Nairobi is owned by lawyer John Mburu, and targets business travellers and holidaymakers on a shoestring budget.
Sarovar will manage the hotel’s day-to-day operations, earning a fee for its brand and services.
The 80-room hotel is located on Riverside Drive and its construction has already started with the opening set for 2019.
A typical Hometel hotel development cost in Kenya (excluding cost of land) is estimated at $60,000 (Sh6.1 million) per room.
“There is a growing demand for good value for money hotels across the country and abroad. This is the largest demand segment. We aim to cater to these markets with our hotels by offering best value to business and leisure travellers,” said Ajay Bakaya, managing director at Sarovar Hotels in a statement.
“Tetezi Hometel Nairobi will be the first in Africa,” he said, adding that the “brand delivers profitable hotels to owners.”
Mr Mburu will invest about Sh480 million in the construction, Sarovar said.
The budget hotel brings to four the total number of properties managed by Sarovar in Kenya including Heron Portico and Zehneria Portico.
Lazizi Premiere located near the Jomo Kenyatta International Airport, is set to open next month.
The Indian hotelier has three brands: Premiere (luxury), Portico (midscale) and budget offering Hometel. There are 10 Hometel hotels worldwide, Sarovar said.
Sarovar presence in Africa will now total to eight hotels including New Africa Hotel and Casino in Dar-es-Salaam, the 73-roomed Panorama Sarovar Portico in Juba, Sarovar Premiere in Lusaka, and Sarovar Premiere Addis Ababa.