A June 2020 report by Cytonn Investments sees a cautious recovery from the adverse effects of the Coronavirus pandemic as Villa Rosa Kempinski, Ole Sereni, Hemingways Watamu, Radisson Blu Arboretum and Trademark Hotel announce plans to resume restaurant operations including dine-in option and home delivery.
Kenya has announced over 3300 cases of SARS-COV2, after testing over 108,600 samples. The measures to contain its spread has seen the government close down Nairobi and Mombasa. These has affected businesses.
In May, govt eased restrictions on restaurants, allowing some to open but to adhere to spacing dining tables at least 1.5 metres apart, limiting the number of persons per table to 4 per 10 SQM, and strict client and staff temperature monitoring.
Cytonn expects the hotel reopening coupled by the plan by airlines such as Kenya Airways (KQ) and Air Tanzania to resume passenger flights, to put hotels back on a slow recovery path, even as social distancing measures and curfews remain in place.
The sector has been boosted Sh2 billion by the Tourism Finance Corporation (TFC) loans which are meant to as stimulus package for hotels and other hospitality facilities.
National Tourism and Hospitality Protocols Taskforce is also developing tourism and hospitality protocols and guidelines in response to COVID-19 pandemic and to support tourism operations.
One of the biggest deals in the hospitality and real estate sector has been the takeover by Chaudhary Group of the Fairmont the Norfolk and Fairmont Mara Safari Club from Saudi Billionaire Prince Al-Waleed bin Talal.
Chaudhary Group, a Nepalese multinational paid sh2.8 billion for the majority stake acquisition.
Cytonn sees this as Kenya’s attractiveness particularly to high-net-worth global investors keen on tapping into the vibrant sector of top-notch hospitality facilities.
“We expect the sector to continue recording activities as the economy cautiously reopens following the COVID-19 closures, coupled with improved infrastructure, foreign investments and continued government efforts to cushion businesses,” Cytonn said.