Why South African company disposed of its Nairobi hotels
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Nairobi, Jan. 30 -- South Africa's City Lodge Hotel Group said it decided to sell three hotels in Nairobi and another property in Dar es Salaam after failing to gain traction in the markets, adding that the exit helped it sidestep a major marketing spend that would have been required to build its brand.
The multinational sold Nairobi's Fairview Hotel, Town Lodge Upper Hill, City Lodge Hotel at Two Rivers Mall and City Lodge Hotel Dar es Salaam to private equity fund Actis last June for an aggregate net consideration equivalent to Sh3.3 billion.
City Lodge says it decided to accept the unsolicited offer by Ukarimu Limited and Faraja Limited, which are owned by Actis because it was staring at an unacceptably long path to profitability in ...
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