City Lodge to open hotels in Kenya and Tanzania

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The City Lodge Hotel Group has reached an agreement to develop a 170-room City Lodge Hotel within the upmarket Two Rivers mixed-use development that is currently under construction in Nairobi (Kenya).

The group, which already owns the Fairview Hotel and the Country Lodge in Nairobi, has acquired the land for the new hotel on a 99-year long-term lease basis and will design, develop, fund and operate the 170-room City Lodge-branded hotel. The total cost is expected to be $23 million.

Construction of the hotel is expected to begin in January 2015, with completion scheduled for October 2016. The Two Rivers Mall is currently under construction and is scheduled to open in October 2015.

Meanwhile, City Lodge has also reached a land-lease agreement in the Ilala Municipal District of Dar es Salaam (Tanzania), on which it plans to develop, at its own cost, a 147-room City Lodge Hotel. This development, which is subject to regulatory permits and approvals, is expected to cost around $22 million, with ground-breaking anticipated to take place in the first quarter of 2015.