Nairobi’s iconic Southern Sun Mayfair Hotel has closed down and all employees fired as the economic wind continues to blow across the hotel sector in Kenya.
The hotel which has been operational for more than 10 years, has confirmed that it will be closing down on January 31, 2020, and that all employees’ contracts have been terminated.
“Employee contracts have been terminated after due consultation. All staff has been provided with the necessary support aligned with the labor laws,” said the hotel in a statement.
The hotel had 171 rooms and it has blamed stiff competition in the hotel sector in Kenya for its woes especially with the entry of new players.
It is now official that the hotel is no longer operational and it is not admitting any new quests.
The closing of Mayfair Hotel comes a few days after a date for the auctioning of the Njenga Karume’s Jacaranda Hotel was set for January 22, 2020. Jacaranda Hotel has failed to repay a loan of 253 million shillings. Jacaranda Hotel is embroiled into a family inheritance tussle between Njenga Karume’s siblings.
The closing of Mayfair Hotel also comes less than a month after Boma Hotel, owned by Red Cross was placed under receivership over the ballooning of loans which it has failed to pay.
Azuri Hotel, on the other hand, is merging with the Pride Inn due to the hard economic situation. Pride Inn is not better off either.
Dove Cage Hotel also closed down due to the tough economic situation. The hospitality industry has always been lucrative in Kenya but with recent ailing of the giants, investors will have to rethink.
READ: Njenga Karume’s Jacaranda Hotel To Be Auctioned On January 22