InterContinental Hotel Could Be Auctioned Over Massive Debt


InterContinental Hotel Could Be Auctioned Over Massive Debt

Luxury five star hotel located in the heart of Nairobi City County, The InterContinental Hotel, is broke and could be sold on the fall of the hammer if nothing solid comes to its rescue.
As at the end of 2018, the luxury hotel owes Ksh700 million. The hotel is strategically located in Nairobi overlooking the mausoleum of founding President Jomo Kenyatta and Parliament buildings. It is a favorite for foreigners attending conferences and business meetings in the Central Business District of Kenya's capital.
Creditors are now threatening to auction the 389-bed hotel to recover their money.
A letter, seen by a journalist of this outfit, dated February 7, 2019 written by Mr Jonah Orumoi, the chief executive of Tourism Finance Corporation (TFC) to Privatisation Commission counterpart Joseph Kosgey depicts a sad state for the hotel.
Mr Orumoi brings to the attention of Joseph Kosgey that the company that owns InterCon is facing financial difficulties and it cannot thus meet its obligations as they fall due.
He says that the company is technically insolvent since it cannot pay its debts owed to Stanbic Bank to the tune of Ksh717 million.
He further stressed the fact that the hotel is unable to service its long term facilities which have as a result accrued high interests and penalties.
The hotel has not made any profits for the last ten years. Last year, they made a loss of Ksh113 million. Its technical insolvency is brought as a result of its liabilities exceeding its current income by Ksh511 million.

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