This archive report was first published on 7 August 2020.
Published on August 7, 2020, the hospitality industry in Kenya is facing a significant downturn due to the Covid-19 pandemic. Two three-star hotels in Nairobi are being auctioned off to recover millions in loans.
The Laibon Hotel in South B and the Hotel Grace Villa and Guest House in Ngara are being sold by banks that have repossessed the properties from defaulting clients. Kenya Shield Auctioneers is seeking between Sh175 million and Sh190 million for the six-storey Laibon Hotel, which has 56 rooms, a bar, restaurant, and offices on 0.115 acres.
“Under instructions received from our principals the chargee in exercise of their statutory powers of sale conferred upon them, we shall sell by public auction the... property together with all the improvements erected thereon,” said the auctioneer in a public notice.
The Hotel Grace Villa and Guest House, located near Jamhuri High School along Limuru Road, is being sold by Garam Investment Auctioneers for Sh112.5 million. The property has shops at the front, a butchery, bar, restaurant, meeting room, 11 guest rooms, servants quarters, and a proposed club fitted with sound-proof walls on the stage.
Experts say it will take some time for the hospitality industry to recover, even with the easing of travel restrictions and resumption of international flights. The industry has been one of the hardest hit by the pandemic, with Kenya losing Sh80 billion in tourism revenue so far.
