City Lodge Hotels Limited has reached agreement with Nairobi-based Fairview Hotel Limited to acquire the other 50% of a joint venture between the two companies, giving it full ownership of the Fairview Hotel and the Country Lodge in Kenya’s capital city.
Completion of the sale is subject to Kenyan and South African regulatory approvals, including that of the Competition Authority of Kenya.
City Lodge acquired 50% of the two hotels in May 2012 and established a joint venture with the hotels’ previous owners to investigate other expansion opportunities in Kenya and elsewhere in East Africa.
The agreement regarding City Lodge’s acquisition of the other 50% of the joint venture is effective from 31 January 2014 .
City Lodge Chief Executive, Clifford Ross, said the transaction demonstrates the group’s confidence in Kenya and East Africa and provides a strong platform for further growth in the region. “We have been very pleased with our strategic investment into the Kenyan hotel market and look forward to building on this foothold in the East African region,” he said.
“We have learnt a lot about the region over the past couple of years and are optimistic about development prospects that we can pursue.”
City Lodge is examining expansion opportunities in East Africa, West Africa and other Southern African Development Community countries.
The group operates 55 hotels across four brands in South Africa, Kenya and Botswana.
