InterContinental Hotel Properties Set for Auction After Four Years of Closure

A significant event is unfolding in Nairobi’s hospitality sector as a large collection of assets from the once-renowned InterContinental Hotel is scheduled to be auctioned. The auction, conducted by Garam Investment Auctioneers, is set for August 29, 2024, and will feature a wide array of items from the former luxury hotel, which has been closed for four years.

According to a notice published by the Star, the auction will commence at 11 a.m. on the designated date, with the sale of various goods belonging to the Kenya Hotel Properties PLC. These assets were previously housed in the InterContinental Hotel, which was situated off Parliament Road. The auction notice highlights the breadth of items up for bid, ranging from cold storage units and reception counters to exercise equipment and housekeeping tools.

Among the notable items listed for auction are cold rooms, 2-door fridges, assorted chillers, and work stations. Additionally, the auction will include roof fans, massage beds, weighing scales, and a Jacuzzi. Various kitchen appliances, including cookers, kitchen hoods, and dough mixers, will also be available. The range of items further extends to household essentials such as sinks, tables, and laundry equipment, including washing machines and dryers.

The auction presents an opportunity for prospective buyers to acquire high-quality goods from a once-prestigious establishment. Interested parties can view photographs of the items either at the InterContinental Hotel’s former premises or on the auctioneer’s website. Viewing for the auction began on August 20 and will continue until August 28, 2024.

The InterContinental Hotel’s closure in August 2020 marked the end of an era for one of Nairobi’s premier hospitality venues. The hotel, which boasted 389 rooms, shut down due to operational challenges that resulted in a substantial loss of employment for its staff. The closure followed a period of financial difficulties that had plagued the hotel, including a significant loss of Sh113 million in 2018 alone.

Prior to its closure, the hotel had faced mounting financial pressures, with liabilities far exceeding its income. The situation had become so dire that the hotel was on the brink of an auction in early 2019 due to unpaid debts. Despite its storied history and status as a leading hotel, the InterContinental struggled with profitability, failing to generate positive financial returns for a decade before its closure.

The auction of these assets reflects the broader challenges faced by the hospitality industry in Kenya and the impact of financial mismanagement and operational hurdles. The sale of the InterContinental’s property not only marks the end of its operational chapter but also provides an opportunity for other businesses and individuals to acquire valuable assets from the former hotel.

As the auction date approaches, stakeholders and interested buyers are closely watching the developments. The sale of these items could offer a glimpse into the final days of the InterContinental Hotel and its legacy in Nairobi’s rich hospitality landscape.