NAIROBI, Kenya, Nov 29 – South African hotel chain City Lodge will open its doors to guests in December at Two Rivers on Limuru Road.
The 200 room, Three star hotel will become the third property for the Group in Nairobi after Fairview Hotel and Town Lodge Upper Hill, and the 58th hotel under the City Lodge group.
“Occupancies in our existing Kenyan hotels have increased exponentially in the last six months, leading us to believe that our Kenyan based guests – as well as those visiting Nairobi on business or leisure – will welcome our newest hotel to the family,” said the Group in a statement.
Two Rivers developer – Centum Investments Group Chief Executive Officer James Mworia says the completion of the hotel is just one of the properties at the end tail of development within the Two Rivers Mall.
“Victoria Commercial Bank will be opening their headquarters at Two Rivers in March 2018 and we have a significant pipeline of other developers who want to buy development sites at Two Rivers,” said Mworia during the Centum investor briefing for the Half Year results.
Other projects include two office towers of 21,000 square metres for sale and for letting and residential development.
“The most common enquiry we get is, ‘when are we going to have a hospital here and when can we have apartments?’ so today, we have a waiting list of about 70 (clients who want to buy apartments),” says Mworia, mainly because of the limited number of apartments in the area and the user rules that restricts development of apartments.
Mworia says the Two Rivers Mall has catalyzed interest in the mixed-use development with the mall currently 72 percent let with 109 trading tenants, 7 months after the centre opened.
He projects that the mall will be 85 percent let by March 2018 with 130 trading tenants.
Centum has taken the Two Rivers development model to two of its other properties in Vipingo in Kilifi and Pearl Marina in Uganda.
The model includes; buying significant tracts of agricultural land, changing use to commercial, developing a master plan, building infrastructure, then either constructing internal projects like malls or selling to other developers.
“Our total investment in Two Rivers was Sh1.7 billion and on the back of that, we raised Sh7.7 billion for 42 percent stake in the first round…so effectively Two Rivers Development Limited ended with a 50 percent equity stake for contributing the land and putting together the project,” said Mworia.