Tsogo Sun, a South African hospitality group is shutting down its Southern Sun Mayfair Hotel in Nairobi whose workers have been sacked.
The hotel will close at the end of this month to quit that market it has operated in more than ten years.
“Tsogo Sun Hotels confirm that the Southern Sun Mayfair Nairobi will not renew its lease and will officially cease operations on the January 31, 2020,” the company told the press.
All the employee contracts have been terminated after due and far reaching consultations and all the affected workers have been provided with the necessary support aligned with the labour laws.
Mayfair, a 171 room hotel has faced increased competition over the past decade as the hospitality industry has witnessed growth, entry of new players and expansion by other established brands.
Establishment of new properties saw the available rooms hit over 20,000 and new signings over the past two years spurred the growth of the number of hotels in Kenya’s pipeline with the Hotel Chain Development Pipelines in Africa 2019 report indicating that some 27 more hotels will soon be opened shop in Kenya.
Kenya currently has 68 global branded hotels and the number is expected to rise,going by the current investment trends.
By 2023 the hotels rooms in the Kenyan market is expected to rise 4,232. Many hotels in the pipeline are expected to open in 2021, with more than 1,150 rooms scheduled to enter the market.
Radisson, Accor, City Lodge, Hilton, Swiss International, City Blue and Marriott are some of the respected brands expected to grow their local presence with new properties in Kenya.