Hilton: Owners Mull Converting Iconic Nairobi Building Into Student Hostels, Retail Shops

• Hilton, owned by the government of Kenya and Hilton International Ltd, noted the building may be used for other activities in response to the dynamic market
• Some of the building's tenants include the Co-operative Bank of Kenya, Goodlife Pharmacy Ltd, G4S Limited, Lintons Place Ltd and Bata Shoe Company
• The property boasts 333,839 squares of built-up area, 40 basement parking spaces, a 20-storey hotel tower with 287 rooms

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

Following its closure, the iconic Hilton Hotel building in Nairobi could be converted into retail shops and student hostels if its owners' suggestion goes through.

Why Hilton may be transformed

Hilton, owned by the government of Kenya and Hilton International Ltd, noted the building may be used for other activities in response to the dynamic market.

"The key investment characteristics that highlight the capital value of the property and asset management opportunity presented by the former Hilton Hotel are the opportunity to configure the retail space to provide more floor area for additional retailers," the duo stated, as reported by Business Daily.

The building's retail section measures 28,458 square feet with an occupancy rate of 82%.

According to Daily Nation, some of the building's tenants include the Co-operative Bank of Kenya, Goodlife Pharmacy Ltd, G4S Limited, Lintons Place Ltd and Bata Shoe Company.

Hilton revealed it earns roughly KSh 91.9 million per annum from retail leases.

Besides retail space and hostels, the owner suggested that a new investor could turn the facility into a three-star hotel in anticipation of increased demand for rooms in the city.

The property boasts 333,839 square feet of built-up area, 40 basement parking spaces, a 20-story hotel tower with 287 rooms, and retail shops on the ground and mezzanine floors.

Why Hilton Hotel was shut down

The hotel shut its doors after 53 years of operations in December 2022.

A spokesperson of the hotel said that they had had extensive discussions and concluded to cease operations.

The hotel, in which the government has a 40.57% stake, said the decision was influenced by several factors and not limited to the impact of the COVID-19 pandemic.

What to know about Hilton

• Hilton opened a new luxury hotel along the Peponi-Kitisuru Road in Nairobi after exiting the city's central business district.
• The hotel retained other hotels and deployed some of its staff to the different branches.
• Lang'ata MP Jalang'o said the growth of SMEs in Nairobi CBD was to blame for Hilton's shutdown.