SA firm City Lodge to build Sh2bn hotel in Nairobi

An impression of the City Lodge Hotel
An impression of the City Lodge Hotel. PHOTO/FILE
City Lodge Hotel Group, a South African hotel firm listed on the Johannesburg Stock Exchange (JSE), has announced plans to build a Sh2 billion hotel at Centum’s Two Rivers development in Runda, Nairobi.

The 170-room City Lodge Hotel, whose groundbreaking is slated for January, will be situated within Two Rivers, a mixed-use “city” that is under construction in Runda and due to open in October next year.

City Lodge Hotel Group, which owns Fairview Hotel, has acquired land for the hotel on a 99-year lease basis and will design, develop and operate the facility that is due for completion in October 2016.

“This will be the first time that we are developing a green-field hotel in the region, also illustrating our optimism about the prospects for the Two Rivers development and the high profile status and draw-card potential it will have in Nairobi,” said the firm’s chief executive Clifford Ross.


The Two Rivers mall is part of a Sh17 billion mixed-use real estate development that is being undertaken by Centum on a parcel of land that was acquired from the Koinange family in a transaction estimated to be at least Sh1 billion.

The Two Rivers development, once completed, will comprise 850 000 square metres of medium density residential homes, a five-star hotel, office blocks and a shopping centre.

Runda has recently attracted deep-pocketed investors seeking to establish high-end hotels and restaurants catering for business travellers.

Former attorney-general Charles Njonjo is reportedly planning to build a Sh1 billion hotel and retail centre in Runda. The proposed facility, which will be adjacent to Mae Ridge homes, will include a 200-bed hotel, a retail centre and an office block.