Corporate News
CBK governor Njuguna Ndung’u. He attributed the poor performance of
Kenyan banks in Uganda to high competition from established local
players. Photo/FILE
By MUGAMBI MUTEGI
In Summary
- Tune Hotels joins a growing list of global hospitality brands that have set up shop in Kenya in the last two years looking to benefit from increased luxury and business travel.
The owners of Imperial Bank have partnered with a
Malaysia-based hotel chain to construct a Sh2.2 billion budget hotel in
Westlands by July next year.
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Tune Hotels will build their first African hotel in Kenya in
a joint venture with the Imaran Group, a Kenyan investment firm that
also built properties such as Imperial Court in Westlands, Kivulini in
Thika and the Mvuli in Nairobi.
The 12-storey hotel will have 280 rooms, which will
be offered on a limited service model where customers only pay for what
they use during their stay.
Tune Hotels joins a growing list of global
hospitality brands that have set up shop in Kenya in the last two years
looking to benefit from increased luxury and business travel.
“Tune Hotels Group plans to invest about $25
million (Sh2.2 billion) in its new hotel in Kenya,” Mark Lankester, the
group chief executive officer, said in Malaysia last week.
Alnashir Popat, 63, a serial entrepreneur with
directorships in tens of Kenyan businesses, is the chairman of both the
Imaran Group and Imperial Bank that has been in operation for 21 years.
He had a seven per cent stake in the bank as of December 2012 but the
level of his ownership in the investment group was not immediately
clear.
The Imaran Group also has interests in several
companies like PathCare Kenya (a medical diagnostic firm), Hitech Cables
(a manufacturer of electrical cables) and Auto Springs & Spares, an
automotive equipment supplier. The group’s chief executive, Aly Popat,
did not disclose details of the deal, including equity structures.
A media briefing to announce the hotel plans is scheduled for Thursday this week.
“This (Kenya) is a new market for us in Africa and
the details of this new venture will be announced in the next two
weeks,” said Mr Lankester who is set to attend the event.
Tune Hotels is co-owned by Tony Fernandes, one of
Malaysia’s wealthiest people, and Kamarudin Meranun and has over 50
hotels in Indonesia, Thailand, Australia, Malaysia, Philippines, United
Kingdom and India.
These hotels brand themselves as a limited service
chain where customers who book early pay less, a model used by budget
airlines like AirAsia—which Mr Fernandes owns —and Kenya Airways’ JamboJet.
Under the “no-frills” model, a customer will only
pay extra if he uses amenities like the spa, hair driers, air
conditioning, watch premium television channels or order extra linen.
For instance, Tune hotels in the United Kingdom offer an extra towel for approximately Sh256.
For instance, Tune hotels in the United Kingdom offer an extra towel for approximately Sh256.
“Tune Hotels helps you get a five-star class
sleeping experience at a one-star price by getting rid of those costly
extras that sometimes you just do not need and should not have to pay
for,” the company states on its website.
pmutegi@ke.nationmedia.com
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