KENYA AGREES TO SELL SHARES IN INTERCONTINENTAL, HILTON AND MOUNTAIN LODGE
News broke overnight that the Kenyan government had finally agreed to sell their stakes in the holding companies owning the InterContinental Hotel in Nairobi, the Hilton Hotel in Nairobi and the Mountain Lodge, presently co-owned and managed by Serena Hotels.
It is understood that the share holding in the respective owning companies by the Kenya Tourist Development Corporation is significant, and expected to earn government a handsome premium.
The ‘holding company’ for the InterContinental Hotel, Kenya Hotel Properties, is co-owned by KTDC to the tune of 33.8 percent, while Hilton’s holding company, International Hotels is co-owned with a 40.7 percent share. KTDC also holds just over 39 percent in Mountain Lodge. All the respective shares are due to be sold on a ‘first right of refusal’ basis to the other shareholders in the respective companies and no ‘outside’ investors are likely to get a chance to grab hold of those stakes.
However, no decision has been made on a range of other properties owned by KTDC, most notably the Kenya Safari Lodges, which comprises three attractive properties, the Mombasa Beach Hotel and the Voi and Ngulia Safari lodges in Tsavo East and Tsavo West respectively.
Watch this space for upcoming announcements when the transactions have been made.
