Here Is A List Of 8 Economically Hit Hotels In Kenya
By Juma / January 8, 2020 | 8:30 am
The hotel sector in Kenya seems to be going through tough economic times even as 2020 begins to take shape.
In a span of few months, more than eight notable hotels in Kenya have either fired their employees, being auctioned or placed under receivership.
The majority of the economically struggling hotels have blamed the cost of doing business in Kenya, coupled with the prevailing tough economic environment that is hitting hard on their businesses.
As the new year kicked off, the Windsor Hotel and Country Club fired 87 employees. The hotel is also planning to send 100 others parking by the month of March this year.
Njenga Karume’s Jacaranda Hotel will be auctioned on January 22, 2020, for failing to pay a loan of 253 million shillings. The hotel has been at the center of family disputes among the late Njenga Karume’s siblings.
Boma Hotel, which is owned by the Red Cross has been placed under receivership with all possibilities pointing to it being auctioned if the financial situation won’t ease.
Azuri Hotel, on the other hand, is merging with the Pride Inn due to the hard economic situation. Pride Inn is not better off either. The hotel has laid off two of its properties in Lantana.
Southern Sun Mayfair and its sister eatery Golden Spur Steak Ranch in Westlands, Nairobi, have closed down. The hotel that was set up in 1997 has been struggling to survive.
Dove Cage Hotel also closed down due to the tough economic situation. The hospitality industry has always been lucrative in Kenya but with recent ailing of the giants, investors will have to rethink.
Hotels affected by the current economic situation in Kenya:
Windsor Hotel and Country Club
Southern Sun Mayfair
Golden Spur Steak Ranch
In 2019, Kenya witnessed the lowest cash flow in 6 years in what analysts blamed on the demonetization process by the Central Bank of Kenya (CBK).
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