Furthering its expansion drive into parts of east, west and southern Africa, the City Lodge Hotels Group has reached agreement with the shareholders of Fairview Hotels Limited to acquire a 50% stake in that company, which owns and operates two hotels in the Upper Hill area of Nairobi, Kenya.

The two hotels are the 120-room Fairview Hotel and the adjacent 84-room Country Lodge. The transaction is effective from June 1 but remains subject to regulatory approvals in Kenya and the South African Reserve Bank.

While the Fairview Hotel will retain its name, Country Lodge will be rebranded to Town Lodge, in line with City Lodge’s intention to increase the penetration of its brand names in other parts of Africa.

“We see this as a great opportunity to acquire a shareholding in two very well run hotels as a going concern,” said Clifford Ross, City Lodge’s CEO.

City Lodge’s entrance into the Kenyan market is its second expansion outside of South Africa, following its announcement earlier this year that it was developing a 106-room Town Lodge in Gaborone, the capital Botswana. This hotel is on track for completion in December.

Anna-Belle Mulder