Nairobi has been identifies as a regional hub for business travellers. PHOTO | FILE
Electronics distribution firm Mitsumi has diversified its business with the opening of a mid-level hotel in Westlands in which it invested about Sh2.5 billion.
The 94-room hotel named Golden Tulip will be run by Louvre Hotels Group as Mitsumi seeks to cash in on the growing hospitality business in the country.
Louvre Hotel Group and Mitsumi struck a partnership for the former to manage the new property.
“The investment in the hotel per room is about $250,000 (Sh25.2 million),” said Mr Jagat Shah, chairman and CEO of Mitsumi Group.
Golden Tulip Westlands will be the seventh hotel operated by Louvre in East Africa. The group runs a hotel in Rwanda and Ethiopia each and four in Tanzania — two in Dares Salaam and two in Zanzibar.
Nairobi has been identifies as a regional hub for business travellers with international and local names in the hospitality industry jostling for property around the airport area and within the central business district and its periphery including Westlands and Upper Hill.
The hotel has a gym, sports bar, roof-top swimming pool, two restaurants and conference facilities for up to 600 people. Last month, JW Marriot signed an agreement with Chinese firm Avic to manage a hotel in the same area. It is slated to begin operations in 2020.
Avic started building the Sh10 billion venture mid last year following approval by the county government. Tune Hotels is also set to open its doors in June in Westlands.
The 11-storey, 280-room facility which cost an estimated Sh2.9 billion will operate on a “no frills” model where customers only pay for the amenities they use and are charged a discounted fee for early booking.
Tune will open its doors at the same time as Park Inn run by Radisson.
Mitsumi started off with distributing IT hardware and software products including computers. It has since diversified into real estate, textiles and now the hospitality industry.
“Business tourism is increasing, so this is just the first hotel for us as we look to set up more in a year or so. We are also looking to purchase a hotel from a group in Kenya,” said Mr Shah.
More than 10 firms have in the past one year completed or announced entry into the local hospitality industry, growing the bed space by over 2,500 rooms.
Visitor numbers to Kenya are expected to rise from 1.9m in 2012 to 2.4m in 2017.
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