The InterContinental Hotel in Nairobi is mulling shutting down operations in Kenya amid a new move to fire its entire staff.
In a memo sent to staff on Tuesday, the management of the hotel cited that its decision was pegged on the high operational cost for the 389-bed hotel of five-star rating within the Central Business District (CBD) of Nairobi.
It issued a 45-day notice to the staff.
“We write to inform you that the InterContinental Hotels Corporation Limited (Kenya Branch) (IHCL) is, for operational reasons, considering a permanent closure of the InterContinental Hotel Nairobi and winding up all its operations in the Republic of Kenya,” part of the memo read.
“As a consequence of such intended winding up, all employment positions within the Hotel, including your position of waitress would become redundant,” the memo added.
The InterContinental Hotel Nairobi has been running for the last 51 years. In 2018, the Sovereign Group, an investment firm owned by the Moi family and billionaire Joshua Kulei obtained a majority shares (51.13%) from its parent UK-owned firm.
The government had a 33.8 percent stake in the hotel.
However, in 2019, it was in an auction tussle over unpaid debt.
It still remains unclear if the decision was informed by the economic aftereffects of the COVID-19 pandemic.
InterContinental’s setting was a key attraction for business travellers. It featured a poolside, coffee shop and a number of bars and restaurant.