Simba Corp takes 35pc stake in Hemingways
Auto dealer Simba Corporation has completed the acquisition of a 35 percent in hotel group Hemingways.
The deal, said to be worth hundreds of millions of shillings, now boosts Simba Corp’s presence in the hotel industry, which it expects to deliver positive returns to the group’s income.
The acquisition comes just three months after the group announced it had put on ice plans to open several mid priced hotels across the country.
Simba already owns the Acacia Premier Hotel in Kisumu and has a significant stake in Vila Rosa and Ole Mara Kempinski.
Announcing the deal, Simba Corp chief executive officer Adil Popat said the strategic investment will provide additional capital to fund growth and expansion with the Hemingways group.
“Through our partnership with Hemingways, we intend to continue to build on this strategy. This investment is therefore aligned to Simba’s goal of creating a substantial Hospitality business platform with the intention to expand nationally and within the region,” Mr Popat said.
Hemingways runs three hotels in Kenya located in Nairobi, the Maasai Mara and Malindi.
The transaction also includes Express Travel Group, a subsidiary of Hemingways, that provides comprehensive and high quality travel management services through its international franchise partnerships with American Express Global Business Travel and Europcar International as well as through Hemingways Expeditions, a premium destination management company.
With the acquisition, Simba Corp will have representation on the Hemingways board.
While no details on future expansion were given, Hemingways is in the process of constructing a mix use development in Watamu comprising of a hotel and apartments.
Hemingways Holdings chairman Richard Evans said the partnership with Simba Corp would offer strategic direction, informing the group’s future endeavors in the hospitality industry.
Hemingways is said to be interested in developing more luxury offerings under its portfolio.
“At this point in our expansion plans, with the fabulous new mixed use development of hotel and apartments in Watamu nearing completion, this is exactly the right time for us as a group to partner with a very respected operator such as Simba,” Mr Evans said.
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