South African hospitality group, Tsogo Sun, which owns the facility has announced its closing down the hotel whose employees have already been sacked. The multinational says it will close the hotel at the end of this month and exit the Kenyan market altogether after a decade.
“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,” the company told the Business Daily.
“Employee contracts have been terminated after due consultation. All staff have been provided with the necessary support aligned with the labour laws.”
The 171-room hotel unsuccessfully tried to remain afloat and open in the face of increased competition over the past decade as Kenya’s hospitality industry continues to witness entry of new players and expansion by established brands which has made survival hard for brands like Southern Sun Mayfair Hotel.
Kenya is estimated to have 68 global branded hotels, a number that is expected to increase with the current investment trend.
New available rooms hit over 20,000 in the country currently hover above 20,000. The Hotel Chain Development Pipelines in Africa 2019 report shows that another 27 hotels will soon be opened in Kenya.