The Famous Nairobi Intercontinental Hotel has finally closed its doors, owners put up movable assets for auction.
The hotel has since put all the movable assets for sale, they include vehicles, bedsheets, televisions, carpets, and kitchen equipment.
The hotel owners who were close friends to the late President Daniel T. Arap and the family are planning to lease the property or change the business model to mixed use-property.
“Duly instructed by Kenya Hotel Properties (KHP) we shall sell the undermentioned goods belonging to the former InterContinental Hotel located off Parliament road through a public auction,” Garam Auctioneers said.
Intercontinental was closed down in April 2020, Immediately the government announced the strengthened measures to curb the Covid-19 from spreading.
Before the Covid-19 breakout, The luxurious hotel had a debt of over Ksh717 million as of December 2018.
The debt was mentioned by the Tourism Finance Corporation (TFC) Chief Executive Officer Mr Jonah Orumoi in February 2019.
In his letter, he revealed that (KHP) was technically insolvent since it was unable to service its loan owed to Stanbic Bank.
In August 2020, The Intercontinental management made a public announcement that they will permanently close due to uncertainties that came with the Covid-19 pandemic.
“With regard to the InterContinental Nairobi, we have conducted a thorough review of all options available We are considering the question of whether, and when the Hotel might reopen; or whether we should now surrender the tenancy de-flag and permanently close the Hotel and hand back the property to the landlord, ” The management said.
The privatization discussions with the Sovereign Group which own the largest shares of 19.2 in the Hotel has commenced.
Development Bank Of Kenya owns a 12.99 per cent stake, while Joshua Kulei, the late President Daniel Moi’s former private secretary, Rodger Kacou, and Ahmed Jibril own a combined stake of less than one per cent in the firm.
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