The Privatisation Authority of Kenya has appointed Standard Investment Bank and an undisclosed consortium, to oversee the sale of its Intercontinental and Hilton hotels in Nairobi’s CBD. This is in line with the government’s plan to privatize at least 26 state-owned enterprises. Notably, the government owns a 33.83% and 40.57% stake at the Intercontinental and Hilton hotels, respectively. The two iconic hotels have been in operation for over 50 years, however ceased their activities in 2021 and 2022, respectively, citing financial constraints and the effects of the COVID-19 pandemic.

 

Hilton Hotel, Nairobi CBD	Intercontinental Hotel, Nairobi CBD
Year Opened: 1969 Grade: Luxury Owner/Brand: Hilton Hotels And Resorts Operator: Hilton Hotels And Resorts No. Of Keys: 287	Year Opened: 1967 Grade: Luxury Owner/Brand: IHG Hotels And Resorts Operator: Kenya Hotels Property Limited No. Of Keys: 326

 

Source: Estate Intel

 

The privatization of the prime hotels is crucial for their revival and consequently bolster their performance as well. Interestingly, this comes at a time when the hospitality market has come from a period of turbulence emanating from the effects of the pandemic, and has been recording significant improvements in activities and performance. In Q2:2023, the sector recorded the second largest expansion in the country at 12.2% after the financial services sector, according to the Kenya National Bureau Of Statistics (KNBS).

 

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