The PrideInn Group of hotels is facing closure. This is after a Mombasa hotelier asked the High Court to wind up the PrideInn Group of Hotels over a Sh. 87 million debt which is linked to a lease row.
Salim Sultan Moloo, owner of Tropicana Hotels Limited, he leased his Eden Rock Hotel in Malindi to PrideInn Hotels in 2011, but claims the new tenants unilaterally cancelled the contract.
He told the court that this debt was to be repaid in installments by way of postdated cheques, but PrideInn Hotels began defaulting on the payments in 2012 and is yet to settle the sum.
The debt stood at Sh69.35 million as at May 2016, but carried an interest rate of 26 per cent per annum.
“More than four years have passed since the undertaking to pay the debt was given by the company to the petitioner and more than three months have passed since the statutory demand was issued and received but the company has failed to satisfy the whole debt or part thereof,” says Mr Moloo in court papers.
“The petitioner therefore humbly prays that the company, PrideInn Hotels & Investments Ltd be wound up by the court.”