Competition Pushes South African Hotel Chain Out Of Kenya

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South Africa’s flagship hotel chain Tsogo Sun Hotels is exiting the Kenyan market.  Southern Sun Mayfair in Nairobi which is owned by the South African giant is going to close at the end of January.

The hotel has been operational since 2010 however despite spirited efforts to keep afloat, its profitability has been compromised by the entry of other big players.

International hotel chains like Hyatt, Hilton, Marriott and Accor have been making active investments in the Kenyan market over the past few years. The new hotels will bring to the market 4,232 new hotel rooms by 2023. The bulk of the hotels in the pipeline are expected to open in 2021, with 1,155 rooms scheduled to be ready.

Workers at  Southern Sun Mayfair have already been laid off and just a thin crew remains to see off the month.

It is unknown if any other brand will take of the property.

Tsogo Sun Hotels operates over 100 hotels in South Africa, Seychelles and the Middle East.

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