This archive report was first published on 10 January 2020.
On January 31st, 2020, the Southern Sun Mayfair Hotel in Nairobi will cease operations, marking the end of over a decade of service in Kenya. The hotel's closure comes amidst a challenging economic environment and increased competition from new international players.
According to a statement to Business Daily, Tsogo Sun Hotels has confirmed that the hotel will not renew its lease and will officially cease operations on January 31st. Employee contracts have been terminated after due consultation, and all staff have been provided with necessary support aligned with labor laws.
Recently, other hotels in Nairobi have also faced challenges. In December 2019, Windsor Golf Hotel and Country Club sent home 87 employees, citing tough economic times. Additionally, Jacaranda hotel was put up for auction, and Boma Hotel is now under receivership.
Despite these challenges, the hotel industry in Nairobi continues to evolve. According to a report by the Hotel Chain Development Pipeline in Africa, Kenya expects 27 new hotels in the next five years, indicating a shift towards new entrants and expansion of smaller hotels.
