The Hospitality Africa Weekly
Jambo,
Welcome to this week’s newsletter where we delve into different news in the hotel industry. In this edition, we emphasize the significance of understanding employment contracts and the consequences of accessing a company's confidential documents. We also highlight the case of a security guard whose dismissal was upheld four years later.
Join us for this news and more!
Kenya anticipates 25 new hotels for the year following tourism boom
Kenya has seen an increase in international and local tourism, leading to a significant growth of the country's revenue from tourism since travel resumed after the pandemic. International arrivals have contributed KSh152.6 billion during the first half of 2023, a remarkable 31 percent increase over last year's KSh116.2 billion.
Capitalizing on this tourism boom, investors are set to construct 25 new hotels this year. It is estimated that 3,729 rooms will be added in these next developments compared to the 3,155 room numbers registered last year.
According to the Hotel Chain Development Pipeline Africa Report, these developments are an increase compared with 24 hotels built last year.
Source: Business Daily
Court upholds Windsor Hotel's termination of security guard for sharing confidential information
In 2018, a security guard named Stephen Muthinzi found confidential documents in a meeting room at the Windsor Golf Hotel & Country Club and shared them with a colleague in an attempt to decipher their usefulness before discarding them in the bin.
The documents turned out to be confidential board minutes related to the hotel's restructuring plan, costs, liabilities, and capital injection, and sharing the content with his colleagues was grounds for termination.
Recently, the dismissal of Muthinzi was upheld by the Employment and Labor Relations Court, which found that there were valid reasons for his dismissal and that the procedure was fair.
The court was of the view that Muthinzi's role had been in securing the room and not examining its contents and even though the documents was not classified as confidential the hotel had followed the necessary procedures and offered him a terminal payment, which he refused, arguing that his dismissal was procedurally incorrect.
Source: Business Daily
High Court denies administrator's request to maintain control of DusitD2 Hotel and other properties
The Kenyan High Court rejected a request by Ms. Vruti Shantilal Shah to extend her tenure as an administrator for multi-billion shillings assets belonging to Cape Holdings Ltd
Ms. Shah, whose term ended in June, went to the High Court to seek an extension, arguing that it was necessary for the interests of justice and all creditors involved, including the property where the DusitD2 hotel stands.
As a result of the failed purchase of blocks within the complex over a decade ago, the property has become collateral for a Sh2.82 billion loan to the bank and is also subject to a Sh5.5 billion debt claim by Synergy Industrial Credit Ltd.
The request was rejected, however, by High Court judge Alfred Mabeya who argued that she had failed to make visible progress during her previous 12 months in office. I & M Bank currently has jurisdiction over the property.
Source: Business Daily
Embracing the extended stay trend: Why local hoteliers should adapt to a changing industry
There is an ongoing shift in consumer behavior that has led to the rise of extended-stay hotels in the US, this trend can influence dealmaking in unexpected ways creating new opportunities and challenges for the hospitality industry.
This is not only reshaping the hospitality industry but also impacting the dynamics of mergers and acquisitions.
To capitalize on this shift major players like Hilton and Marriott are making strategic moves into this space. Dealmakers are now eyeing these properties as attractive investment opportunities, thanks to their cost-efficiency and high-profit margins.
Extended stay accommodations can also offer advantages to the hotels that provide them. Here are some of the benefits of hotels offering extended stay options:
Increased Occupancy and Revenue since extended holiday guests are usually booked for long periods and this results in higher rates of occupancy. This more stable demand can make it easier for a hotel to generate consistency in its revenues.
Improved profit margins Compared to conventional hotels, where there is regular cleaning and occasional turnover of guests, extended stay accommodation can often offer reduced operating costs. The result may be an increase in profit margins.
Optimized Inventory Management Extended stay bookings allow hotels to optimize their room inventory and forecast demand more accurately.
Stabilized revenue: During the year, hotels may be able to maintain stable revenues by combining long-stay guests with short-term visitors.
Extended stay accommodation may be of great benefit to hotels and provide a wide range of benefits such as increasing revenues, customer loyalty, or operating efficiency.
Source: Financial Times
Hotels turn to technology for early detection and control of Bedbugs
In a proactive move, hotels in France and the UK turn to AI-enabled ‘spotta’ technology to detect bedbugs early.
Bedbugs, notorious for their invasiveness, can inadvertently accompany guests within their luggage, and in a matter of weeks, a few bedbugs can multiply to a point where an establishment harbors over a thousand of them since an adult female can lay up to 400 eggs in her short lifespan.
Spotta technology is effective as it leverages AI software to detect bugs before taking a picture for human eye clarification this allows the hotel to start chemical pesticide treatment or heat treatment pest control measures offering an effective strategy to combat the escalating bedbug problem.
Source: BBC NEWS
World Research Summit for Tourism and Hospitality 2023
location: Orlando Florida, USA
Date: 08 - 11 Dec 2023
Event: Conference
This summit is to be held in Orlando, Florida, US on 8th-11 December 2023, a unique opportunity for stakeholders in the hospitality industry to unfold and embrace Resilience, by engaging a range of stakeholders such as academic researchers’ industry experts, and government representatives from all over the world, in discussions about how we can use research to further developments.
To register and/or book exhibition space for the summit go here
Banquet Manager
Fairmont Hotel, Nanyuki, is seeking an experienced Banquet Manager with a minimum of three years in a leadership role.
Duty Manager / Night Shift - Hospitality
Full-time manager to work the night shift. Interested applicants must have a minimum of -5 years of supervision/management experience
Apply here
Stay informed on the latest in hospitality – subscribe now to THEHOSPITALITY.AFRICA for our upcoming newsletter!