It has been confirmed that the City Lodge Hotel Group has reached an agreement with Nairobi-based Fairview Hotel Limited to obtain full ownership of both Fairview Hotel and Country Lodge. This deal was completed after Fairview Hotel agreed to sell its 50% of the joint venture between the two companies.
City Lodge acquired the first 50% of the two hotels in May 2012 and established a joint venture with the hotels’ previous owners in order to investigate other expansion opportunities in Kenya and elsewhere in East Africa.
The agreement regarding City Lodge’s acquisition of the remaining 50% of the joint venture came into effect on 31 January 2014, and the two hotels will be rebranded as Town Lodge hotels.
It 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,” said City Lodge’s CEO, Clifford Ross.
We have learnt a lot about the region over the past couple of years and are optimistic about development prospects that we can pursue.”
Apart from its investment in Kenya, the City Lodge Hotel Group also has a Town Lodge in Gaborone, Botswana, and is examining expansion opportunities in East Africa, West Africa and some Southern African Development Community countries.
To date the City Lodge Hotel Group operates 55 hotels offering 6,755 rooms across four brands in South Africa, Kenya and Botswana.