Dar es Salaam and Nairobi City Lodge Hotels up for sale

City Lodge Hotel Group has announced plans to sell its Tanzanian entity, City Lodge Hotel in Dar es Salaam and three Kenyan hotels in plans to exit East Africa after barely seven years of operation.

According to Business Daily, South African company that owns Nairobi’s Fairview Hotel, Town Lodge and City Lodge Two Rivers have finally received regulatory approvals to sell the three hotels to Actis for Sh20 billion.

City Lodge Dar es Salaam were not available for comment after several phone calls went unanswered.

City Lodge Hotel revealed that it received the green light from the Competition Authority of Kenya (CAK) in January.

It said the approvals were delayed and have forced it to push the date of completing the sale to April this year.

The East Africa units were loss-making to the tune of Sh20 billion as at the end of 2020.

The hotel received approvals from the regional anti-trust body Comesa Competition Authority in December which noted they had received information from CAK that the acquisition did not pose competition risks.

City Lodge Hotel in Dar es Salaam has 148 rooms, whereas Fairview Hotel has 127 rooms; City Lodge Hotel at Two Rivers has 171 rooms and Town Lodge Upper Hill 84 rooms (all in Nairobi)

The deal involves a joint bid between Actis and a private company registered in the British Virgin Islands called Jamison Valley Holdings.