The Fairview Hotel, Town Lodge and City Lodge Two Rivers in Nairoi have been put on sale. The three high end restaurants have been put on sale by their South African owner in a move that will see Fairview exit the local and East African market.
According to a report that appeared in a Business Daily, City Lodge Hotel Group has received already received an offer from a buyer who is keen on acquiring the three hotels. This buyer will also acquire the City Lodge Hotel in Dar es Salaam.
“Shareholders are advised that following receipt of an unsolicited non-binding offer for the proposed acquisition of City Lodge’s East African operations, comprising of its hotels situated in Kenya and Tanzania, the company has entered into negotiations which, if successfully concluded, may have a material effect on the price of the Company’s securities,” said report quoted City Lodge Hotel Group.
The intention to sell the three hotels was revealed at the Johannesburg Stock Exchange where the hotel group trades.
“The firm says that occupancy levels have been below expectations at Two Rivers while bookings in the Tanzanian unit have been sluggish, leaving only Fairview with a robust performance. The firm has not however made a direct reference to sluggish business as the reason for selling the hotels which will now leave its operations in South Africa, Botswana, Namibia and Mozambique.,” the report added.
The four hotels that have a combined bed capacity of over 320 rooms. The 127-room Fairview Hotel, known as the safest hotel in the city, has a long history of hospitality in the region. Its central building is a grand stone structure with ornate wrought iron features including a spiral staircase and an underground wine cellar.
According to the report in the business newspaper, average occupancy for the group in the 12 months to end of June, declined from 55 percent in the previous financial year to 38 percent.