This archive report was first published on 5 August 2020.
Published on August 5, 2020, a notice from InterContinental Hotels Corporation Limited Kenya revealed plans to shut down operations in the country, citing operational reasons.
The iconic InterContinental Hotel Nairobi, strategically located near Parliament Buildings, could be among the establishments affected by the decision.
According to the notice, all employment positions at the hotel would become redundant as a consequence of the intended winding up of operations.
The company did not explicitly state whether the closure is linked to the negative effects of COVID-19, which has had a significant impact on the tourism industry.
InterContinental Hotel Nairobi has faced financial struggles in the past, with a debt of Ksh717 million in 2019. The hotel was even speculated to be auctioned due to its mounting debt.
As one of the government-owned institutions lined up for privatization, the hotel's future remains uncertain.
Other hotel groups, such as Fairmont, have also made the decision to cut their losses over COVID-19, with the indefinite closure of two luxurious hotels in the country in May 2020.
