13 new hotels to enter Kenya in next five years

Monday August 21 2017

Chop House at Radisson Blu. PHOTO | COURTESY

Chop House at Radisson Blu. PHOTO | COURTESY 

By DOREEN WAINAINAH
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A total of 13 hotels are set to open their doors in Kenya over the next five years, growing the bed space by more than 2,400 rooms, according to a report by PricewaterhouseCoopers (PwC).

Pegged on a growing economy and demand for bed space, the study by the advisory firm indicates the hotels are expected to open their doors in the country by 2021 including additional units by Radisson, Marriot and Best Western brands.

“These developments, along with a stable local economy, are attracting international hotels to Kenya. Sheraton, Ramada, Hilton, Best Western, Radisson, Marriott, and Mövenpick are among the international brands scheduled to open hotels in Kenya during the next five years,” PwC says in Hotel Outlook report.

The growth has been accelerated by the increasing number of domestic and international tourists.

“Kenya benefited from the lifting of travel advisories ... and growth in domestic tourism in a strong economic environment, as well as a series of incentives introduced by the government,” reads part of the report.

The incentives include elimination of VAT on park fees, removal of visa fees for children as well as the reduction in park fees by Kenya Wildlife Service.

Others are the waiver of landing fee for charter flights in Mombasa and Malindi.

PwC says guest nights, which declined a cumulative 15 per cent between 2011 and 2015, also rebounded with a 2.9 per cent increase in 2016. The average room rate edged up 2.2 per cent in 2016 and room revenue grew 4.9 per cent.

The advisory firm expects a decline in the occupancy rate over the next two years before a rebound from 2019.

International hotel management chain Best Western has taken over city hotel Meridian and branded it Best Western Plus.

Lazizi Premier opened its doors in May, becoming the first airport hotel to begin operation.

This is expected to be followed by the completion of Four Points by Sheraton Nairobi Airport and Hilton Garden Inn, which are in the final stages of completion.

This will be the second property by Sheraton which took over management of the Four Point Hurlingham, previously Best Western Premier.