According to reports one of Kenya’s most iconic hotels; the Hilton Hotel, will be shutting down indefinitely in December of 2022. The move will lead to lay offs of a significant number of workers and is more proof of the struggles that the hotel industries worldwide are still going through because of the Coronavirus pandemic.
Hilton Hotel which is partly owned by the Kenyan Government (40.57 percent), has also singled out a number of other reasons (apart from the Coronavirus pandemic) for its decision to close its doors at the Centre of the Nairobi Central Business District (CBD) after over 50 years in the country.
A Spokesperson for Hilton Hotel while speaking during an interview made it known that, “Following extensive discussions with the hotel ownership, Hilton Nairobi will close its doors for the last time on 31st December 2022 and cease operations.”
The Spokesperson added that, “Covid-19 created unprecedented challenges for our industry. However, the decision to cease operations is not directly connected to the pandemic.”
On the 27th of April 2022 Hilton Hotel made it known that, “Unfortunately, the closure of the hotel will result in a retrenchment process. However, we will work with those impacted to help them find alternative employment.”
It stated that it will be redistributing some members of its staff to other hotels within Nairobi, that it has under its portfolio.
Hilton revealed on Wednesday the 27th of April 2022 that it is not quitting Kenya entirely and will continue to carry out the operations at its other brands across the East African nation of Kenya.
It stated that, “Hilton Nairobi Hurlingham and Hilton Garden Inn Nairobi Airport are growing our portfolio with new hotel development opportunities in the city and beyond.”
According Business Daily Africa the Kenyan Givernment has in the past ten (10) years made a number of attempts to sell its ownerships in Hilton as well as two (2) other luxury hotels.
The Kenyan government has 40.57 percent shareholding in International Hotels Kenya Limited which owns the Hilton, and a 33.83 percent stake in Kenya Hotel Properties Limited which is the operator of the InterContinental Hotel which got closed down in August of 2020.
According news making the rounds, the Kenyan Government has been “hesitant to pump money in the two luxury hotels, angering other shareholders.”
In addition, InterContinental Hotel along with a number of other top level luxury hotels including Laico Regency and Radisson Blu at Nairobi’s Upper Hill area discontinued their operations due to the economic difficulties brought about by the Coronavirus pandemic.
The tourism in Kenya and worldwide has begun a steady recovery from the ongoing Coronavirus pandemic and the economic struggles it brought on as travelers are now benefitting from lower prices. The number of foreign visitors are still not up to the levels it was at before the pandemic.
It is expected that the Tourism Sector in Kenya which is one of the major sources of foreign exchange for the country, will earn as much as 173 Billion Kenyan Shillings this year (2022). This is 18.5 percent higher than what was achieved in 2021.
Earnings dropped to as low as 88.6 Billion Kenyan Shillings as governments all over the world placed restrictions on travel including shutting down airports for periods of time in order to stop the spread of the Coronavirus pandemic.
Read Also: InterContinental Hotel Is Leaving Kenya
They however bounced back to 146 Billion Kenyan Shillings in 2021 at a period where the number of hotel nights used by Kenyan travelers increasing by double.
Resorts in Kenya which usually focus their marketing moves on international tourists, had to begin looking to the local tourists due to the Coronavirus pandemic and subsequently providing surprisingly affordable prices in order to entice the tourists.
The number of foreign visitors are still significantly fewer than the levels they were at before the pandemic. It stood at 870,500 in 2021 as opposed to 2 million foreign visitors that was the case in 2019. It is predicted that it will get to 1.03 million this year (2022).
The slash in earnings from foreign tourists in the sector has resulted in a significant impact on the local currency which has been trading at all time lows when traded against the United States (US) Dollar.
From the famous Masai Mara and its Safaris, to other wildlife reserves in Kenya and holiday destinations around the Beaches of the Indian Ocean, the Tourism sector in Kenya makes up around 10 percent of the output of the nation’s economy while also employing more than 2 million individuals.
According to the Tourism Ministry the Tourism sector in Kenya, had almost 1.2 million layoffs due to the Coronavirus pandemic. The sector has however begun to employ more staff due to the current gradual recovery.
The Hilton Hotel in Nairobi’s Central Business District (CBD), started its operations on the 17th of December 1969. It was opened officially, by the Founding President of Kenya; Jomo Kenyatta.
The Hilton Hotel when it was launched, was the tallest building in Kenya’s capital; Nairobi. It rose to become a very popular location for tourists visiting Kenya in search of adventures in the Country’s world famous reserves and game parks.
Read Also: Four Points Sheraton Nairobi Crowned Best Luxury Airport Hotel In Africa
The attraction for tourists was the fact that Hilton Hotel provided unique city views through its high rise tower rooms making it a popular hangout for tourists and businessmen.
The Hilton Hotel has a total of 287 rooms; 185 double rooms, seven (7) suites, 45 twins, 27 executive rooms and 22 pool rooms.
According to the Hilton, “The hotel has welcomed guests for more than 50 years. We are proud of the legacy of hospitality delivered and would like to thank all those who have contributed.”
Reports revealed that the ownership of the Hilton property in question, is currently reviewing option with regards to the future of the site.
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