The agreement, effective 31 January 2014, will see the South Africa-based hotel group acquire the remaining 50 per cent of the Fairview Hotel and the Country Lodge in Nairobi, following its initial 50 per cent acquisition of the two hotels in May 2012.
“We have been very pleased with our strategic investment into the Kenyan hotel market and look forward to building on this foothold in the East African region,” said City Lodge’s chief executive, Clifford Ross.
“We have learnt a lot about the region over the past couple of years and are optimistic about development prospects that we can pursue.”
He added that it demonstrates the group’s confidence in Kenya and East Africa and provides a strong platform for further growth in the region.
Completion of the sale is subject to Kenyan and South African regulatory approvals, including that of the Competition Authority of Kenya.
The group, which is made up of the City Lodge, Courtyard, Town Lodge and Road Lodge hotels, recently launched a brand revamp costing it somewhere in the region of two million rand.