City Lodge books into Nairobi
The City Lodge Hotels group added further impetus to its expansion drive into selected parts of Africa by reaching an agreement with the shareholders of Fairview Hotel to acquire a 50% stake in the company.
It owns and operates two hotels in the Upper Hill area of Kenya's capital, Nairobi.
"Through this transaction and our joint venture going forward, we will be able to leverage local knowledge of the east African market to achieve our ongoing expansion objectives," said Clifford Ross, City Lodge's CEO.
The two hotels are the 120-room Fairview Hotel, a "well-established and highly regarded" hotel in Nairobi, and the adjacent 84-room Country Lodge. The Fairview Hotel is owned by the Szlapak and Abbema families.
The deal is effective from June 1 but is subject to regulatory approvals in Kenya and the South African Reserve Bank's approval. City Lodge has also formed a joint venture to explore opportunities in east Africa.