Companies inject billions in Kenya’s hospitality sector
Ole Sereni director Nazir Noordin (L) with KCB chief business officer/managing director Samuel Makome (R) during the signing ceremony between Kenya Commercial Bank (KCB) and Placid View Properties Limited, the company that owns Ole Sereni, for a Sh 1.9billion deal at the hotel along Mombasa Road on April 21, 2015. PHOTO | DIANA NGILA
What you need to know:
- Last week, the Kenya Commercial Bank signed a deal with Ole Sereni hotel, paving the way for expansion that would increase conferencing capacity at the facility.
- The project will see the hotel build a conferencing centre with a capacity of 800 sit-in guests or 1,000 guests for a cocktail event. It also plans to increase the number of rooms and suites by 154 from the current 134. The project will see the set up of a parking with a capacity of 500 vehicles, a spa and gym.
Investors are investing billions of shillings in Kenya’s hotel business, pointing to the potential of the tourism industry that is currently performing poorly.
The giant projects are expected to create jobs for over 400 people.
Last week, the Kenya Commercial Bank signed a deal with Ole Sereni hotel, paving the way for expansion that would increase conferencing capacity at the facility.
The bank has funded part of the project with Sh1.93 billion ($21 million) loan. This will be topped up with Sh637 million ($7 million) generated from the hotel’s shareholders.
Ole Sereni general manager, Mr Ghulam Samdani, said the expansion has been informed by the increasing number of conferencing deals that the hotel has been missing out owing to its limited capability.
“We’ve been having small conferences and business meetings but we’ve been losing out on bigger international conferences, so we decided to expand,” he said.
WELLNESS SPAS
The project will see the hotel build a conferencing centre with a capacity of 800 sit-in guests or 1,000 guests for a cocktail event. It also plans to increase the number of rooms and suites by 154 from the current 134. The project will see the set up of a parking with a capacity of 500 vehicles, a spa and gym.
After completion in the next two-and-a-half years, Mr Samdani said, the hotel intends to employ over 300 people.
India-based hotel chain Sarovar Hotels and Resorts recently acquired Westlands-based Zehneria Hotel for Sh1 billion.
Sarovar Hotels, which operates in Kenya as Heron Portico, said acquisition would position the company to reap the benefits of the expanding hospitality industry in Kenya and the region.
“To remain relevant in the hospitality sector as a business we have to ensure we continue improving services to our customers and provide extra value for money,” Heron Portico director Karim Teja said.
Zehneria Hotel, previously solely owned by Mr Ismail Mawji, will now be known as Zehneria Portico.
Thailand-listed Dusit International has also announced plans to set up a wellness spa and conference villa resort in Rift Valley.
According to the director of Cape Hotel, Snehal Sanghrajka, the second project after the recently launched dusitD2 in Nairobi earlier this month, would be the wellness spa that would operate under the name Dusit Devarana.
The company did not disclose details on the planned investment but it plans to hire about 60 people at the Rift Valley project especially now that the country has positioned itself globally in the subsector and won several bids to host international conferences.
