The Privatisation Authority has initiated the sale of the government's 33.83% stake in Kenya Hotel Properties Limited (KHPL), the owner of the former Intercontinental Hotel building in Nairobi. This move is part of a series of planned divestments in the hospitality industry.
The government has invited investors to submit expressions of interest for the acquisition of its shares in KHPL. The Intercontinental Hotel closed its doors in August 2020 due to financial difficulties exacerbated by the COVID-19 pandemic.
Prior to the pandemic, the hotel had faced financial challenges, including being declared "technically insolvent" by the Tourism Finance Corporation (TFC) in 2019. TFC had expressed concerns about the hotel's inability to repay its debts and lack of basic insurance coverage.
The sale of the hotel building has faced delays over the years. In 2015, a potential sale to Sovereign Group fell through due to a disagreement over the price. In 2021, KHPL explored the possibility of leasing or converting the building into a mixed-use property, but these plans have not materialized. As a result, the hotel remains vacant, with its debt and maintenance costs continuing to accumulate.