This archive report was first published on 25 July 2021.
Kenya Hotel Properties, the owner of the InterContinental Hotel in Nairobi, is recruiting a consultant to help repurpose the hotel, which was shut down in August 2020, into a profitable venture.
The consultant will be expected to define strategic options for the company premises and adjacent parking silo to ensure maximum returns on investment, according to a statement from the hotel owners.
The government has a 33.8 per cent stake in the five-star hotel, which offered accommodation to high-profile guests and heads of state, and has been looking for a buyer to offload its share for years.
However, the new plans to convert the hotel into a mall could complicate the intended sale, with an investment banker noting that there is little value for the Sovereign Group, which has a 19.2 per cent stake in the hotel, to run the hotel.
The InterContinental Hotel has been struggling prior to the pandemic, and it was deemed insolvent after failing to service its financial obligations amounting to Sh717 million.
