Radisson Blu Struggles in Kenya, Shuts Nairobi Upper Hill Outlet

Leading hospitality company, Radisson Blu, is facing serious challenges in its efforts to remain afloat and profitable in Kenya.

The company recently shut down its Nairobi Upper Hill outlet and sent most of its workers back home. This comes as the hotel struggles to attract visitors. Room bookings have reportedly been quite low, mainly due to the COVID-19 pandemic.

Business Daily Africa quoted a spokesperson for Radisson Blu who confirmed that some workers were disengaged. The spoke person said: “To mitigate some of the economic impact of the pandemic, coupled with the uncertainty of Radisson Blu Hotel Nairobi Upper Hill’s reopening date, we have had to make the difficult decision to reduce the size of our workforce at the hotel,” said the spokesperson.

“We understand this is an extremely difficult time for those affected and we will provide support to them throughout the process.”

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Note that Radisson Blu is definitely not the only hotel that has been having challenges in the East African country. A recent survey by the Central Bank of Kenya reported a low hotel occupancy rate, standing at an average of 23% in November and October, as against 24% in September.

In a bid to cope with this situation which was caused by the pandemic, some hotels have resorted to closing down their outlets and letting employees go. One of them, besides Radisson Blu, is Fairmont Hotels and Resorts. In May 2020, Fairmont Hotels and Resorts closed its Fairmont The Norfolk and Fairmont Mara Safari Club as a result of decreasing hotel occupancy rate.

Note that Radisson Blu Kenya kept paying its workers since March until recently because management was highly optimistic that it would reopen this hotel booking activities this year. Unfortunately, rising Coronavirus caseloads means that it can no longer fully open until March 2021.