Hotel Group to Spend $35 million in Kenya

By Godfrey Tung'wet Posted 26 July 2006 @ 02:08 pm EET     Print     Reprint     E-Mail     Comments

NAIROBI (IBTimes.com) - Fairmont Hotels & Resorts, operating some 120 hotels globally, will use part of its $500 million war chest for its thrust across the continent.

Click to Enlarge Fairmont Hotels & Resorts to Open in ...

Speaking to journalists after unveiling a $35 million renovation programme for its local hotels – 75 per cent of the funds will go to Mount Kenya Safari Club and Norfolk hotels the group's director of transition in Kenya, Mr Sean Billing, said their success would guide decisions on investing around Africa.

"It is critical that we get it right in Kenya," he said explaining that the first impressions would be important when going into other countries. He revealed that he had travelled to a number of African countries for exploration.

Among the countries are Tanzania, Uganda, Egypt and South Africa. The group will run the hotels on the continent under either the Fairmont or Movenpick brands. Mr Billing said Kenya had been chosen as a launch pad because of its stability, rich human resource, variety of scenery and growth prospects. The group, which took over the hotels from Lonrho last year, runs other hotels in the US, Canada, Bermuda, Barbados, Mexico and the United Arab Emirates.

Mount Kenya Safari Club will take $16.5 million. The renovations begin in the middle of this quarter and end in June 2007. They will include re-doing rooms, basic landscaping, and a health spa and swimming pool.

"The main building will be drastically revitalised. The current dining room will be renovated and complemented with brand new kitchen and new buffet," says the company. "Terrace area and trophy lounge will be converted into a new 80-seat dining room featuring the view of Mount Kenya and the sprawling lawns at the Club." Mr Billing said the facilities would have their exteriors and reception areas redone. Fairmont will make each of the offerings unique with some local characteristics.

At Masai Mara Club where $5.5 million would go beginning September, for instance, they have commissioned locals to do some of the decorations. Landscaping, installing more natural tents, main building improvements and vehicle enhancements will take most of the cash. Norfolk will take $10 million, and the Ark $3 million. Mr Billing said the group may in future buy or put up new units in Kenya.