Sunday, Oct 17, 2021
HomeBusinessEconomyInterCon hotel exits scene as owners auction movable assets

InterCon hotel exits scene as owners auction movable assets

Iconic InterContinental Hotel exits scene

The owners of InterContinental Hotel, have put up moveable property on sale as they prepare to lease the building.

The hotel, including allies of former President Daniel arap Moi, has put thousands of goods up for auction including vehicles, bedsheets, televisions, carpets, and kitchen equipment.

Former President Daniel Moi’s ally Joshua Kulei and Moi’s Ex-Private Secretary Rodger Kacon with Amed Jibril own a joint stake of less than one percent in the hotel.

Garam auctioneers said they had received private instructions to put the hotel property up for sale.

Kenya Hotel Properties (KHP) is seeking a consultant to advise on a change of business model for the hotel, which closed permanently in August last year on the back of the coronavirus pandemic.

The move signals that the hotel building could be converted to office blocks, shops, and mini-hotels.

“Duly instructed by Kenya Hotel Properties we shall sell the undermentioned goods belonging to the former InterContinental Hotel located off Parliament road through a public auction,” the auctioneers said.

It is also open to selling or leasing the InterContinental Hotel building to the government, which owns several properties in the vicinity including Parliament, Kenyatta International Convention Centre, and Sheria House.

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According to KHPL, it is seeking advice on a mixed approach model complicating the intentions by the government to sell its 33.8 percent stake.

“To envision and evaluate a mixed-use approach to the premises together with the pros and cons associated therewith,” KPH said in a notice seeking consultants.

The decision to put the global chain InterContinental Hotels Group (IHG) on the dead rock has seen to devalue the once City’s iconic hotel.

“Define the various strategic options available for the company premises and adjacent parking silo to repurpose the property to ensure maximum returns on investment,” said KHP in a notice.

The Privatisation Commission had expected to commence leasing talks with Sovereign Group, owning a 19.2 percent of Kenya Hotel Properties Limited (KHPL) and Development Bank of Kenya, which owns 12.99 percent stake.

Kenya lost nearly Ksh.100 billion in tourism revenue last year, when the number of foreign visitors decreased by two thirds due to the pandemic with the industry having earned the country, Ksh163.5 billion in 2018.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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