Hilton Hotel to Cease Operations in Kenya in December 2022

Nairobi’s Hilton Hotel is closing its doors on December 31^st, 2022, after 53 years of operation at the heart of Nairobi.

While many hotels have been shutting down due to challenges attributed to covid 19 pandemic, Hilton says its closure does not entirely stem from the pandemic. It will lay off some of its staff and redeploy others to its other outlets within the city.

“Covid-19 created unprecedented challenges for our industry. However, the decision to cease operations is not directly connected to the pandemic. 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,” Hilton said on Wednesday.

The Hilton Hotel Nairobi, which is owned 40.57 percent by the government, began operations in Nairobi on December 17th, 1969, and was officially opened by His Excellency the late Mzee Jomo Kenyatta. It held a 33.83 percent stake in Kenya Hotel Properties Limited, the operator of the InterContinental Hotel, which also shut down in August 2020.

At its inception, the Hilton hotel was the tallest building in Nairobi. It was soon a haven for Kenya’s leading business people, leisure tourists, and government officials, who were its loyal patrons. It has been known as a pioneer in the hospitality industry, having set the standards for hospitality in the city.

The COVID-19 pandemic caused an unprecedented level of disruption to the hotel industry. A combination of local lockdowns and travel restrictions temporarily closed hotels while others curtailed operations. This saw many operators reduce their labor costs by reducing working hours.

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The industry’s growth trajectory came to a halt as it contracted by 9.3 percent and 83.3 percent in the first and second quarters of 2020, respectively. This was an all-time low from a growth of 13.1 percent and 10.1 percent in the first quarter of 2018 and 2019 and 15.4 percent and 9.0 percent in the second quarter of 2018 and 2019, respectively.

The third quarter of 2020 saw an improvement of 30.4 percent following the easing of government restrictions and resumption of most economic activities since July 2020. However, the positive outlook was short-lived, and prospects were shuttered when the country witnessed the third wave in April 2021. This prompted new containment measures such as lockdown of five counties, extension of curfew hours, and closure of bars, with hotels operating take-away services only.

Luxury hotels include Serena Hotels, Weston, Enashipai Resort and Spa, Ole-Sereni Hotels, DusitD2 Nairobi, Sopa Lodges, White Rhino Hotel in Nyeri, and Maiyan hotel in Nanyuki suspended operations following a reduction in the number of guests at the facilities.