Tragic end in sight as once-iconic five-star hotels in Nairobi limp to closure

There was a time when five-star hotels in the central business district (CBD) dominated the city’s skyline.

This is not the case anymore for iconic Hilton, Sarova Stanley, InterContinental, Norfolk hotels and Grand Regency which changed to Laico Regency. The landmarks, which for decades remained the face of the city’s high-end lifestyle, have lost their glitz.

Only The Stanley, the oldest hotel, has weathered storms to stay afloat. The other four have experienced operational challenges. The Stanley opened its doors in 1902, having been established by businesswoman Mayence Bent.

Unlike The Stanley, Hilton, InterContinental, Norfolk and Laico Regency have wobbled. In their prime, these hotels attracted the crème de la crème in society. 

The hoi polloi could only imagine and marvel at the five-star hotels that added to the city’s splendour, beauty and modernity.

Sadly, their elegance is fast disappearing, thanks to the emergence of more sophisticated hotels, biting economic times and stiff competition. The situation was made worse by the Covid-19 pandemic.

With a struggling hospitality industry, gone are the days when the CBD was filled with visitors courtesy of Hilton, Sarova Stanley, Intercontinental and Norfolk.

These iconic hotels attracted tourists to Kenya from other parts of the world to sample dazzling city life and its history.

The allure that pulled visitors has disappeared, and InterContinental Hotel is such a perfect example. Established in 1967, the hotel is a pale shadow of its former self.

Yet it is here that visiting presidents among other high ranking dignitaries dined, wined and slept. At its peak, the hotel was a hive of activity.

The once bubbling life has been replaced with an eerie silence. The place is deserted. Only two security guards man the hotel’s building, with public parking of cars the only visible activity.

From a distance, a female guard who keeps a gaze at the main entrance on City Hall Way looks bored. From her posture on a plastic chair, it appears the guard does not expect visitors.

No wonder even after our vehicle stops at the security barrier, the woman is not keen to establish the mission of the occupants in the car.

Such a cold response is a departure from the past when she could have sprung on her feet at the sight of an approaching car. The abstract pose is testimony of InterContinental’s fall from glamour to gloom.  

We inquire from the guard if we could get past the gate. She turns us down with the disappointing response that the place is out of bounds. “This place closed; there is no activity taking place anymore,” she says with finality.  

Just a few months ago, the place was full of life and teeming with visitors. There was a 24-hour reception, valet parking, butler services with concierges and bellboys dashing from one end to the other to assist guests.  

Run by InterContinental Hotels Corporation, the hotel was shut down by management last year, citing financial constraints coupled with the effects of the coronavirus pandemic. The Kenyan government has a 33.8 per cent stake.

“InterContinental Hotels Corporation Limited is for operational reasons considering a permanent closure of the Intercontinental Nairobi and winding up all its operations in the Republic of Kenya,” read the notice of intention to shut down the business.

Before closure, the hotel was reeling under debts owed to a local bank and had been declared insolvent the previous year. The permanent closure has left hundreds of employees redundant with auxiliary services suffering, too.

It has been almost become common for five-star hotels in the CBD to struggle to survive. For a long time, such hotels relied on conferences, tourism and events.

Although Norfolk has since resumed operations, the sorry state of InterContinental is reflected in Laico Regency. On a bright note, Radisson Blu in Upper Hill, which closed in the wake of coronavirus pandemic, opened its doors again a few days ago. 

Only recently, Hilton’s management released a closure notice, adding to the woes bedevilling the industry. The signature hotel has for decades remained an imposing and unique edifice.

The hotel started operations on December 17, 1969 and was officially opened by President Jomo Kenyatta.

On its inauguration, the hotel was the city’s tallest building. It soon became a favourite spot for leisure tourists seeking wildlife adventures, government officials and influential business people.

According to author Kojo Bentum Williams, the hotel has hosted various celebrities over the years, including US actor Sydney Poitier, the sixth UN Secretary-General Boutros Boutros-Ghali, famous Hollywood actress Angelina Jolie and musician Sean Paul.

Hilton was the first hospitality entity in Kenya to sponsor leading safari rally driver Patrick Njiru who would regularly park his famed Subaru at the place.

“The hotel was also the first property in the city to introduce the executive lounge concept for its VIP guests in 1994 and it was also the first hotel to create a leading pastry shop in the city known as the Hilton la Patisserie,” says Williams.

It has 287 guest rooms, three restaurants, an American-themed coffee shop, two bars (indoor and outdoor) and a fully equipped gym facility with a spa, and heated pool to cater for its enrolled members and in-house guests.

It is understood hotel will redeploy some staff to hotels within its Hilton portfolio in the city.  There is Hilton Nairobi Hurlingham and Hilton Garden Inn Nairobi Airport. Other than Covid-19, the hotel, which is owned 40.57 per cent by the government, had been struggling to stand on its feet.

An official at Kenya Tourism Board (KTB) told our sister paper The Standard that the agency had received a notice from the hotel, alerting it that it will cease operations at the end of the year.

“I can confirm that Hilton Hotel will shut down in December. We have received the notice. I’m not sure what has occasioned the decision, but I know business has not been looking up for the hotel, especially after Covid-19 struck,” said the senior official.

On the other side of town, fond memories linger at the sight of what used to be elegant the Laico Regency, which struggled before shutting down due to effects of coronavirus.

The hotel offered discreet luxury, exquisite cuisine, ideal conference rooms, complete with an exclusive private members’ club and an all-weather pool. It was a preferred place for high-flying individuals.

It has since closed its doors and renovation works are currently being carried out by the next proprietor.  

“We are anticipating operations to resume early next year following a change of management,” said a caretaker overseeing the refurbishment.

After shutting down for more than 20 months due to Covid-19, Norfolk, a hidden gem outside the CBD, finally resumed business recently.

It opened its doors to its first clients on December 25, 1904 after being established by Major C.G.R. Ringer and R. Aylmer Winearls for use by early settlers who ventured to Maasai Mara, the Coast and the Rift Valley.

It was also a meeting point for white hunters who founded the East African Professional Hunters Association at the place in 1934.

Some of its famous guests were Maj-Gen Robert Baden Powell, the founder and first chief scout of the Scout Movement who stayed here in Febuary 1906 and Theodore Roosevelt who camped there in 1909 before later on becoming the 26th President of the United States.

The hotel was featured in the 1985 movie, Out of Africa, starring Meryl Streep and Robert Redford. It has 27 luxurious suites and 143 rooms, a heated outdoor swimming pool and a health club with a fitness centre and indulgent spa facilities.

However, it has had its fair share of challenges. On the eve of New Year 1981, it was bombed by Muradi Akaali, who had booked a room there. Many people died and the entire western wing was destroyed.

It was rebuilt and normal business resumed until a dispute over salary cuts forced Accor, the owners of the hotel, to shut operations indefinitely, sacking all employees following disruptions and low revenue brought about by Covid-19.

Over the years, InterContinental, Sarova Stanley, Hilton and Norfolk provided breathtaking elevated views of the city’s landscape for guests seeking leisure.

It is for this reason that veteran hotelier Mohamed Hersi quivers at the thought that these stylish landmarks with such rich history intertwined with the steady growth of the city are on the brink of extinction.

“Since the Nairobi Expressway has become a reality with the potential of decongesting traffic from the airport, the next step should be reviving KICC to attract conventions. This will lead to revival of business needed to support the hospitality industry and save our heritage hotels,” said Hersi.

However, Mike Macharia, the chief executive of Kenya Association of Hotel Keepers and Caterers has a different view. He says there is no need of having five-star hotels within the CBD anymore since the town has become a metropolis.

The town, according to Macharia, is growing vertically and hotel facilities, too, should follow these developments. He said so far, the city has more than 30 five-star hotels located away from the city centre.

“In the grand scheme of things, if the two hotels (InterContinental and Hilton) close down because of business decisions, that is not a disaster. There are more good hotels outside the city centre and after all, it is not the first time hotel chains are relocating - a similar move was taken by Sheraton Hotel,” said Macharia.