Work underway on 169-room City Lodge Hotel Two Rivers, Nairobi

Work has begun on the 169-room City Lodge Hotel Two Rivers in Nairobi and the hotel is expected to open in the second quarter of 2017.

Earthworks began towards the end of 2015 and the foundations have commenced at the Two Rivers mixed-use complex site, to be followed by the construction of the hotel, which will become the 58th in the Johannesburg headquartered City Lodge Hotel Group.

Standing on the City Lodge Hotel Two Rivers site in Nairobi are five members of the management team of the Fairview Hotel in Nairobi, which is also part of the City Lodge Hotel Group. They are (left to right): Collins Kimani, guest relations manager; Miriam Obegi, assistant general manager; Morne Bester, general manager; Mohsine Korich, executive chef; and John Munga, human resources coordinator. Watching from above is Caleb Omido, chief accountant.

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Releasing its financial results for the six months to 31 December 2015, the City Lodge Hotel Group said occupancies improved in the six months to December at both of its existing Kenyan hotels – the Fairview Hotel and Town Lodge Upper Hill, Nairobi.

The group also provided an update on its expansion plans in Tanzania and Uganda. It said that construction of the 147-room City Lodge Hotel Dar es Salaam has been delayed due to outstanding regulatory approvals impacted by Tanzania’s recent general election and the appointment of a new cabinet. It is expected that construction will commence within the next couple of months with completion expected towards the end of the second quarter/beginning of the third quarter of 2017.

In Uganda, the group said liaison is ongoing with the prospective landlord to reach a feasible outcome for the development of the planned 150-room City Lodge Hotel Kampala.

Meanwhile, the group said that development of the 151-room Town Lodge Windhoek is on track. Construction of the hotel is expected to start in May/June and the hotel is scheduled to open in the second quarter of 2017. In Mozambique, final approvals are being sought towards the development of the 148-room City Lodge Hotel Maputo. This hotel is expected to open in the third quarter of 2017.

Commenting on its interim results, the group said its revenue rose by 17.3% to R753.4 million (South African rand) and its headline earnings grew by 17.5% to R194.1 million.

The group has 54 hotels in South Africa, two in Kenya and one in Botswana. Its brands include Fairview Hotel, Courtyard Hotel, City Lodge Hotel, Town Lodge and Road Lodge.