The deal is in line with Sarova Group’s strategy of partnering with investors to manage hotels at a fee, other than building its own.
Sarova is now keen on signing partnerships with investors eyeing the hospitality industry owing to tits experience.
Sarova Group has signed a management deal with Woodlands Hotel Limited that will see the hospitality chain supervise operations of the new four-star facility set to be opened at the end of next month in Nakuru.
The deal is in line with Sarova’s strategy of partnering with investors to manage hotels at a fee, other than building its own.
The Sh1.3 billion Sarova Woodlands is the third property to go under the management of the hospitality chain nine years after the group signed the first deal with the Moledina Family for the Saltlick and Taita Hills facilities.
Sarova Group managing Director J.S Vohra told the Business Daily that the hotel chain was now keen on signing partnerships with investors eyeing the hospitality industry owing to tits experience.
“Building a hotel is subject to finances and tourism doing well. When you have your own returns are better but you will spend it all on servicing loans, but when you manage you get a small fee for managing. If investors have the money and want to build a hotel but lack the expertise we come in,” said Mr Vohra.
“But world over today hotel chains are switching to management and we are open to partnerships because Sarova Group has a strong hold in Kenya and is the best experienced hospitality firm locally. Managing allows us to also utilise our cash flow better.”
Sarova Woodlands is the second facility under the hospitality chain in Nakuru County and the ninth outlet in Kenya.
The 146-room hotel is located near State House Nakuru, about a kilometre to the town’s central business district (CBD).
Sarova’s decision to invest in Nakuru comes at a time when Nairobi is experiencing significant activity on the hospitality scene, underlined by a growing number of conferences and business meetings.
The facility targets business travellers on transit along the busy Nairobi, Nakuru, Kisumu highway. Sarova Group plans to open more outlets in counties and is also keen to invest in Rwanda and Tanzania.
The group consists of hotels, resorts and game lodges. They include the Sarova Stanley and the Sarova Panafric in Nairobi, the Sarova Whitesands Beach Resort & Spa in Mombasa and Sarova Mara Camp in the Maasai Mara Game Reserve.
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