South African hospitality group Tsogo Sun is closing its Southern Sun Mayfair Hotel in Nairobi whose employees have been sacked.
The multinational says it will close the hotel at the end of this month, opting out of the market in which it has operated for a decade.
“Tsogo Sun Hotels confirm that the Southern Sun Mayfair Nairobi in Kenya will not renew its lease and will officially cease operations on the January 31, 2020,” the company said in a response to queries by the Business Daily.
“Employee contracts have been terminated after due consultation. All staff have been provided with the necessary support aligned with the labour laws.”
The 171-room hotel has faced increased competition over the past decade as the hospitality industry has witnessed the entry of new players and expansion by established brands.
The opening of the new properties saw the available rooms hit over 20,000. New signings over the past two years spurred the growth of the number of hotels in Kenya’s pipeline with the Hotel Chain Development Pipelines in Africa 2019 report showing that another 27 hotels will soon be opened in Kenya.