Image Courtesy of Booking.com
Mayfair Hotel Bows out as Competition Shakes Nairobi Hotels
Southern Sun’s Mayfair Hotel will shut down operations down on January 31st, firing all employees. Its closure comes at a time when local hotels face stiff competition from new international players, as well as tough economic times. The hotel, owned by South Africa’s Tsogo Group, will leave Kenya after more than 10 years of operations.
A communique to Business Daily asserts that the company has already terminated employee contracts.
“Tsogo Sun Hotels confirm that the Southern Sun Mayfair Nairobi in Kenya will not renew its lease and will officially cease operations on January 31, 2020,” reads a correspondence to Business Daily. “Employee contracts have been terminated after due consultation. All staff have been provided with the necessary support aligned with the labor laws.”
Recently, Windsor Golf Hotel and Country club sent home 87 employees, as 100 others await to leave in March. According to the hotel’s management, the move was necessary due to tough economic times.
Furthermore, Jacaranda hotel was recently put up for auction whereas Boma Hotel is now under receivership.
The closure of the various large hotels happens in the backdrop of new entrants and expansion of smaller hotels. There has been an increasing number of international hotels establishing premises in Kenya. According to a report by the Hotel Chain Development Pipeline in Africa, Kenya expects 27 new hotels in the next five years.