Business Daily (Nairobi)
Wangui Maina
3 March 2008
The Rezidor Hotel Group is scheduled to open a new luxury hotel in Nairobi by early 2010.
It will be based in Upper Hill, Nairobi, and will be run under one of its brands, the Radisson Hotel, said a statement by the group also known as Rezidor SAS.
The group added that the move was in line with its growth strategy and the importance of East Africa as an investment destination. "We see a promising potential in this region and are glad to be present in Nairobi," Rezidor's President and CEO, Mr Kurt Ritter, said.
Elgon Road Developments Limited owns the hotel that is being built in Upper Hill, one of the fastest growing commercial hubs in the city.
The announcement by Rezidor is a boost of confidence for the tourism sector that is currently going through a slump due to the political violence earlier in the year.
Tourism has been one of the worst affected sectors, with most bookings being cancelled. But with the signing of a peace deal last week, the sector is optimistic the destination will recover.
Mr Mike Macharia, the chief executive of Kenya Hotel Keepers and Caterers Association, told Business Daily there was hope of recovering during the high season in June to August with aggressive marketing.
"We can expect at least 50 per cent recovery, especially for the 2008 winter season towards the end of the year," he added.
The hotel will increase bed capacity in Nairobi, which hosts many conferences.
Growth in the tourism sector has led to increased demand for beds in the city, although demand is currently low. Business is, however, expected to pick up.
According to Mr Macharia, Nairobi has less than 1,500 quality hotel rooms yet demand is higher, especially during big conferences.
"The bed capacity is small and we are hoping to attract more investors in the business," he added.
Radisson is the newest international group of hotels to show interest in the hospitality industry in the Kenya.
Last year, The Kempinski Hotels Worldwide, an international hotel chain from Germany, expressed interest in setting up hotels in the country. The international brand is said to be looking for already developed hotels to manage.
Accor Hotels of France had also shown interest in the country and wants to build hotels here. Prime Properties, a South African Company, has meanwhile, been scouting the town for hotels it could partner with.
Placid View Properties Limited is currently converting the former American embassy on Mombasa road to a top end hotel overlooking the Nairobi National Park.
The increased interest by hotel chains like Rezidor SAS, Kempinski and Accor is mainly due to the growth witnessed in the past three years in the tourism sector.
Last year, the sector continued to be the highest foreign exchange earner for the country, bringing in Sh65.4 billion, according to recently released figures by the Kenya Tourism Board.
Rezidor SAS is based in Belgium.
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