The owners of the InterContinental Hotel, which includes former president Daniel Arap Moi’s supporters, are considering leasing the building or turning it into a mixed-use development.
The owners are considering a change of business which complicatws the state’s efforts to sell its 33.8 percent ownership in the five-star hotel.
Kenya Hotel Properties (KHP) is looking for a consultant to advise on changing the hotel’s business model to include a mixed-use approach.
KHP says the hotel building might be turned into office blocks, stores, and mini-hotels. The hotel closed permanently in August of last year.
It’s also considering selling or leasing the InterContinental hotel to the government, which controls numerous nearby structures, including Parliament.
In August, the InterContinental Hotel announced that it will terminate its lease arrangements with KHP, the hotel’s holding company, and close the site due to the economic impact of the coronavirus.
As a result, Sovereign Group appeared to be the most likely choice to buy the 33.8 percent stake before it was sold to outsiders.
Since April 1967, the InterContinental Hotels Corporation has operated and managed the 389-room InterContinental Hotel Nairobi under a 99-year lease.
Last year, Kenya lost almost Sh100 billion in tourism earnings as the number of international visitors dropped by two-thirds.
