South Africa’s low-cost hotel group, City Lodge Hotels, on Monday said it had gained “full ownership” of the Nairobi-based Fairview Hotel and Country Lodge.

The JSE-quoted hotel group said this came after Kenya’s Fairview Hotel firm agreed to sell the outstanding 50 percent of the joint venture between the two firms to City Lodge for an undisclosed amount.

This is deal is part of City Lodge’s first footsteps into expanding into East Africa. It plans to set up shop in West Africa and other parts of Southern Africa.

The transaction is subject to the approval by relevant competition authorities in South Africa and Kenya.

In May 2012, City Lodge bought 50 percent of Fairview Hotel and Country Lodge in its first expansion outside South Africa.

Clifford Ross, the City Lodge’s CEO, said this transaction showed that City Lodge had confidence in Kenya and East Africa in general.

“It also provides a strong platform for further growth in the region,” Ross said.

“We…look forward to building on this foothold in the East African region. We have learnt a lot about the region over the past couple of years and are optimistic about development prospects that we can pursue.”

City Lodge Hotels runs 55 hotels across four brands in South Africa, Kenya and Botswana. In Botswana, the company operates Town Lodge Hotels there.