City Lodge Hotel Group has announced plans to sell its Tanzanian entity, City Lodge Hotel in Dar es Salaam and three Kenyan hotels with the aim of exiting East Africa after just seven years of operation.
According to Business Daily, the South African company that owns Nairobi’s Fairview Hotel, Town Lodge and City Lodge Two Rivers has finally received regulatory clearance to sell the three hotels to Actis for 20 billion shillings.
City Lodge Dar es Salaam was unavailable for comment after several unanswered phone calls.
City Lodge Hotel has revealed that it received the green light from the Competition Authority of Kenya (CAK) in January.
He said approvals had been delayed and forced him to push back the closing date for the sale to April this year.
East African units were in deficit to the tune of 20 billion shillings at the end of 2020.
The hotel received clearances from regional anti-trust body Comesa Competition Authority in December, which noted it had received information from CAK that the acquisition did not pose competition risks.
The City Lodge Hotel in Dar es Salaam has 148 rooms, while the Fairview Hotel has 127 rooms; The City Lodge Hotel at Two Rivers has 171 rooms and the Town Lodge Upper Hill has 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.