CG Hospitality CEO Rahul Chaudray on decision to enter Kenyan market

Tourism across the globe has faced major challenges due to the COVID-19 pandemic, with countries like Kenya experiencing a drastic 72 percent decline in tourist traffic. Despite this significant setback, global hospitality chain CG Holdings has decided to make its entry into the Kenyan market. CEO Rahul Chaudray of CG Hospitality Holdings recently sat down with CNBC Africa to discuss the rationale behind this strategic move. Chaudray highlighted the company's longstanding interest in East Africa's potential for growth, with previous investments in the region dating back nearly a decade. Although a previous venture in Kigali faced challenges, the acquisition of iconic properties such as the Femont and Northfolk in Nairobi and the Femont Safari Club in Masai Mara presented a promising opportunity for CG Holdings. Chaudray emphasized the strategic importance of Kenya as a gateway to East Africa, citing the country's resilience in the face of economic fluctuations and its strong tourism sector. He viewed the current acquisition as timely, leveraging the distressed market conditions to revitalize these historic assets. Despite concerns about the high-risk nature of the investment, Chaudray remained optimistic, drawing parallels to past successful investments in post-conflict regions like Sri Lanka and Nepal. He emphasized the company's hunger for growth and passion for hospitality as key drivers behind their global expansion strategy. Chaudray acknowledged the impact of the pandemic on the hospitality sector, noting the need for resilience and adaptive strategies to navigate the current crisis. While the industry has undoubtedly suffered significant losses, Chaudray viewed the pandemic as an opportunity to reevaluate business models and focus on cost management to ensure long-term sustainability. Looking ahead, Chaudray discussed the company's ambitious plans to expand its investment portfolio, despite delays in launching planned funds due to the pandemic. He reaffirmed CG Hospitality's commitment to seeking distressed assets worldwide and capitalizing on potential opportunities for growth. When discussing the industry's future prospects, Chaudray estimated a gradual recovery over the next year or two, with different regions experiencing varied timelines for revival. He emphasized the importance of supporting smaller players in the industry to stay afloat during these challenging times, advocating for collaboration and strategic initiatives to foster sector-wide recovery.