The famous former Hilton Hotel is owned by International Hotels (Kenya) Limited, and the company has extended an invitation to interested parties to purchase a 59.42 percent interest in the property.
The Kenya Development Corporation (KDC), which is the custodian of State shares in hotels and lodges, valued the government’s stake in the hotel at Sh850.6 million as of June 2022.
Going by this valuation, it means that the combined stake of the State and Hilton International Limited in the hotel would be valued at Sh2.09 billion, with the latter holding 59.42 percent of shares in the International Hotels (Kenya) Limited.
Nonetheless, there are a few requirements that interested candidates must fulfill to be given consideration by the real estate company.
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Bidders will also be expected to demonstrate their financial capacity to buy out the hotel’s current shareholders in full.
For the State, whose sale of stake is being undertaken by the Privatization Authority, investors shall be expected to provide a bid security of Sh10 million or its US dollar equivalent at the current exchange rate.
“In line with the provisions of the Privatisation Act 2023, all relevant laws, regulations, and the constitutive instruments of the International Hotels (Kenya) Limited, the government of Kenya through the Privatisation Authority invites expressions of interest for the purchase of 40.58 percent government shareholding,” the Privatisation Authority stated in a notice on Tuesday.
Both invitations for expression of interest will remain open until May 7, 2024.
Hilton Nairobi fronts four major streets in the capital’s central business district- Mama Ngina Street, Watalii Lane, City Hallway, and Simba Street.
Initially, all interested parties must provide thorough documentation outlining their background, performance history, and ability to finance the purchase.
To demonstrate their financial capacity for the purchase, interested parties should provide a letter of recommendation from a respectable mainstream bank attesting to their reserves.
The company that is bidding must also submit a profile and a track record of successful acquisitions in the past. Furthermore, proof of the bidder’s formal incorporation or registration must be provided.
However, copies of passports or national identity cards will be needed from anyone wishing to make the purchase. Following the government’s October 2023 privatization of the property, the hotel’s portion is being sold.
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