Chinese investors lease Kenya’s iconic Hilton, Intercontinental Hotels in nearly US$1B deal signed by President Ruto

KENYA – President William Ruto has signed investment agreements worth nearly one billion dollars during his state visit to China, with a major highlight being the leasing of Nairobi’s iconic Hilton and Intercontinental hotels to Chinese investors.

This landmark deal marks a significant step in reviving two of Kenya’s most prestigious hospitality properties, which have remained closed for several years following the Covid-19 pandemic and financial difficulties.

The Hilton and Intercontinental hotels, both situated in Nairobi’s Central Business District, have been shuttered since 2020 and 2022 respectively.

The Intercontinental Hotel ceased operations in August 2020 after a long period of financial distress worsened by the pandemic, while the Hilton closed indefinitely at the end of 2022 after 53 years of operation. 

Previous attempts by the Kenyan government to privatize these properties had stalled, with no bidders meeting the government’s reserve price during 2024 sales efforts.

The new agreement involves Hunan Conference Exhibition Group and Huatian Hotel Management Company, a Chinese hotel investment group with experience operating Hilton hotels across Europe and Southeast Asia.

The companies have committed first to refurbish and renovate the hotels, with plans to eventually purchase the properties.

This marks their first investment in Kenya’s hospitality sector, and the government anticipates that the move will catalyze further East Asian investment into the country’s tourism industry.

The leasing deal is part of a broader investment package signed during President Ruto’s four-day state visit to China, totaling approximately US$823 million (KES106 billion).

The government and investors hope that reopening these landmark hotels will generate significant employment opportunities and revive Nairobi’s status as a premier tourist and business destination.

Prime Cabinet Secretary Musalia Mudavadi highlighted the deal’s potential to attract more investors from East Asia and create jobs for Kenyans, underscoring the importance of revitalizing the hospitality sector as a pillar for economic growth.

This development not only breathes new life into two iconic hospitality assets but also strengthens Kenya-China economic ties, reinforcing the role of foreign direct investment in Kenya’s post-pandemic recovery and long-term development.

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