Kenya’s Imperial Bank owners have partnered with Tune Hotels Group, a  Malaysia-based hotel chain, to construct a 12 storey, 280 rooms hotel worth $25 million in Westlands, Nairobi, Kenya. The hotel is slated for completion by mid 2015.

“Tune Hotels Group intends to invest about $25 million in a new hotel in Kenya,” said Mark Lankester, the company’s Group Chief Executive Officer.

The proposed hotel will be Tune’s first foray into Africa’s hospitality industry. It consists a joint venture with a Kenyan investment firm, Imaran Group.

Imaran Group has built properties such as Kivulini in Thik, the Mvuli Suites in Nairobi and Imperial Court in Westlands. It also has interests in various companies such as Hitech, Auto Springs & Spares, and PathCare Kenya. Imaran Group also holds a stake in Imperial Bank.

The details of this new venture including its equity structure were not disclosed.

Tune Hotels is going to use its “no-frills” business model to develop marketing and customer service structure for the soon-to-be launched hotel. Under this model, customers are charged only for what they used during their stay. A customer will only be charged extra if he uses amenities like air conditioning, hair driers, spa, order extra Linen and watch premium Television channels. In Tune Hotels in the UK for instance, they offer an extra towel for $3.

Elsewhere on Ventures

Triangle arrow