Auctioneers have put the popular Hotel Lazinos, a bar and restaurant with accommodation facilities in Nairobi West, up for sale over a debt owed to a local bank.
Garam Investments has invited interested buyers to bid for the multi-storey building in a public auction of the hotel set for March 5 in Westlands.
The auctioneer, however, did not disclose which lender is seeking to sell the property or the amount owed, but said the business has an estimated rental income of Sh3.5 million per month.
“It is a debt. We are not allowed to disclose the bank involved now. You can contact the owners or the bank,” an official at Garam Investments told the Business Daily.
The facility, popular with Nairobi revellers, also did not comment on the matter with efforts to contact the manager unsuccessful. This is the second time that the establishment, along Gandhi Avenue off Langata Road, has been put under the auctioneer’s hammer following a similar plan in 2016.
The prime commercial property has four-floors with two wings and 43 self-contained guest-rooms. It also has conference halls, shops, laundry and salon units.
Hotel Lazinos is registered under Turitu Service Station and sits on 0.1,791 acres of land.
The facility is the latest in the hospitality industry to go under the auctioneer’s hammer in recent times over unpaid debts.
The Mug, a Nairobi coffee shop, is facing an auction over Sh4.3 million rent arrears amid increasing competition in the sector.
Its rivals include Uganda-based coffee chain Café Javas that opened in Nairobi’s CBD last year, eatery Java House and Charlie’s Bistro that took over Nakumatt’s location on Wabera Street. The luxury InterContinental Hotel located in the city centre is also on the verge of being auctioned over debt estimated to be more than Sh700 million at the end of last year.
In October last year, Westend Hotel in Westlands was put up for sale over failure to settle a bank loan running into hundreds of millions of shillings owed to Bank of India.
The entry of international chains into the market has piled pressure on local hotels to improve on the quality and diversity of their services.
Recent entrants include Radisson Hotel Group, Swiss International Hotels & Resorts, Dusit and Accor.