South African hospitality group plans to sell Fairview Hotel, City Lodge Two Rivers, Town Lodge: Report

After six years of operation, the South African hospitality group is planning to sell its three-unit plans, according to a report by Business Daily.

As per reports, the Fairview Hotel in Nairobi, City Lodge Two Rivers, and Town Lodge has been pinned up for sale by the group to exit East Africa. About the selling, the City Lodge Hotel Group said that it has been approached by a buyer interested in buying the three hotels moreover City Lodge Hotel in Dar es Salaam.

It said, "shareholders are advised that following receipt of an unsolicited non-binding offer for the proposed acquisition of City Lodge's East African operations, comprising of its hotels situated in Kenya and Tanzania, the company has entered into negotiations which, if successfully concluded, may have a material effect on the price of the Company's securities".

The news was earlier shared at the Johannesburg Stock Exchange where the hotel is documented.

Reportedly the occupancy levels have been below the mark of expectations at Two Rivers noting a sluggish booking in the unit in Tanzania, while Fairview still marks a robust performance index.

As well the reason mentioned by the group is the sluggish business since the firm will continue with its operations in Botswana, Namibia, South Africa, and Mozambique.