This archive report was first published on 10 January 2020.
January 10, 2020 - Nairobi's hospitality industry has witnessed a significant shift in the past decade, with the entry of new players and expansion by established brands.
The Southern Sun Mayfair Hotel, owned by South African hospitality group Tsogo Sun, is the latest casualty of this trend. The hotel, which has been in operation for a decade, will officially cease operations on January 31, 2020.
According to Tsogo Sun, employee contracts have been terminated after due consultation, and all staff have been provided with the necessary support aligned with the labour laws.
The hotel's closure is attributed to increased competition in the market, which has seen the available rooms hit over 20,000. New signings over the past two years have spurred the growth of the number of hotels in Kenya's pipeline, with the Hotel Chain Development Pipelines in Africa 2019 report showing that another 27 hotels will soon be opened in Kenya.
Kenya is estimated to have 68 global branded hotels, a number that is expected to increase with the current investment trend. The new hotels will bring to the market 4,232 new hotel rooms by 2023, with the bulk of the hotels in the pipeline expected to open in 2021, with 1,155 rooms scheduled to enter the market.
