MSouthern Sun Mayfair Hotel, a subsidiary of South African hospitality group Tsogo Sun, has announced plans to close its operations in Kenya effective January 31, 2020.
The hotel, which has operated in Kenya for the past decade, has already terminated the contracts of its employees as it prepares to depart the Kenyan market later this month.
“Tsogo Sun Hotels confirm that the Southern Sun Mayfair Nairobi in Kenya will not renew its lease and will officially cease operations on the January 31, 2020. Employee contracts have been terminated after due consultation. All staff have been provided with the necessary support aligned with the labour laws,” the company is quoted as saying by a local daily.
The 171-room hotel has faced increased competition over the past decade as the hospitality industry has witnessed the entry of new players and expansion by established brands.
In December 2019, for example, Best Western Plus hotel unveiled a new outlet in Nairobi’s Westlands area. The opening introduced the Best Western Plus brand to one of the city’s most sought-after commercial districts.
In September 2019, InterContinental Hotels Group (IHG) signed a Master Development Agreement (MDA) with Aleph Hospitality that will see the hotels group set up ten franchise hotels across Kenya, Ethiopia, Nigeria, Morocco, Algeria and Ghana. As per the agreement, Dubai based Aleph Hospitality will manage the new hotels while implementing its results-driven management models that helps generate superior returns for hotel owners.
According to InterContinental, the agreement will strengthen the group’s portfolio across six brands including Crowne Plaza, Voco, Hotel Indigo, Holiday Inn, Holiday Inn Express and Staybridge Suites.
“This agreement will add a significant number of rooms across our portfolio of brands in the African continent. Key markets across Africa continue to see solid growth in tourism key performance indicators and we remain optimistic of the long-term potential for the hospitality sector,” Pascal Gauvin, InterContinental Hotel Group’s Managing Director, India, Middle East and Africa said then.