Nairobi’s iconic Hilton Hotel will close its doors indefinitely on December 31 underlining the troubles of the hospitality industry amid the Covid-19 pandemic.
The hotel, which is owned 40.57 per cent by the government, has pointed to other factors beyond Covid-19 for the planned closure after more than 50 years of operation from its location at the heart of the central business district.
The hotel is also set to lay off an unspecified number of workers while the rest will be redeployed to hotels within its Hilton portfolio in Nairobi.
“Following extensive discussions with the hotel ownership, Hilton Nairobi will close its doors for the last time on 31st December 2022 and cease operations. Covid-19 created unprecedented challenges for our industry. However, the decision to cease operations is not directly connected to the pandemic. Unfortunately, the closure of the hotel will result in a retrenchment process. However, we will work with those impacted to help them find alternative employment,” a Hilton spokesperson told a local newspaper in an interview.
Hilton however said it will not quit Kenya and will continue to operate its other brands in the country.
“Hilton Nairobi Hurlingham and Hilton Garden Inn Nairobi Airport are growing our portfolio with new hotel development opportunities in the city and beyond,” it said.
Kenya’s tourism industry has started to pull out of its deep Covid-19-induced slump as local travellers take advantage of lower prices, however, foreign visitor numbers are still well below pre-pandemic levels.
The country expects the sector, typically one of its top sources of foreign exchange, to earn Sh173 billion this year, up 18.5 per cent from last year, the government said.
The drop in earnings in the sector from foreign tourists has contributed to a sharp drop in the local currency, which is trading at all-time lows against the dollar.
