A transaction advisor has been engaged by the government through the Privatization Authority to oversee the sale of the famous Hilton and Intercontinental hotel buildings, which have been vacant since 2020 and 2022, respectively.
The Standard Investment Bank (SIB), situated in Nairobi, is reportedly going to oversee the Ksh10.8 billion privatization of the top properties.
The transaction is a component of the government’s aim to sell off at least 26 state-owned businesses that are either failing or are having difficulty remaining in business.
When the sale is done, investors are eager to buy the prized assets, thus the government should make money from the once-famous hotels.
The Standard Investment Bank will provide assistance on the privatization of the Kenya Development Corporation (KDC) for a period of one year as part of its advisory function. Through the KDC, the State owns a portion of Hilton.
The government will give up its majority ownership of the prime-based assets after the deal is finalized.
The State owns a 33.8 percent investment in Kenya Hotel Properties Limited, the company that owns the Intercontinental Hotel, and a 40.57 percent stake in International Hotels Kenya Limited, the company that owns the Hilton hotel.
In April 2022, the Hilton Hotel announced its closure following 53 years of existence inside the nation.
The hotel, which was once well-known, benefited from its prime location in the center of Nairobi’s Central Business District (CBD).
Conversely, the InterContinental Hotel closed its doors for operational reasons in August 2020. After the government, which holds the majority shareholding, failed to make financial investments in the two hotels, they both closed.
As a result, stockholders withdrew their money from both hotels.