@a4 I own a hotel room at the coast. What you haven't told everyone is that there is a management fee to cater for advertisement, management etc. hotel overheads cannot be oversimplified to kes 195,000. Also 70% occupancy, in my opinion is too optimistic. At the coast, we are lucky if we even have 50% occupancy at this prime location. Here you are talking about Kikuyu. Also, the first 1-2 years, we barely had 25% occupancy. This year it has dramatically picked up; I guess as it gets more popular. We also had to pay for furniture. Does your price include furniture?

Granted, despite all the above, we earn about 6-10% pa. What was projected when were buying was much higher, again, just projections. Would I buy another hotel room? Yes! If I had the extra capital...for me it's location, location, location!

[quote=a4architect.com]@horton. The main role of the hotel manager will be mainly to advertise. We plan to advertise using internet/social media/facebook ads/google ads/email blasts etc. The hotel shareholders will eventualy decide the overall budget to a detailed level.
In your hotel room operations, does the managment allow you to make decisions regarding running costs? In the southern sunshine hotel, shareholders will be allowed to develop/debate/decide the running cost budget to their satisfaction.

Where is your hotel room located? This could be the reason for the low occupancy. I was at the coast last year december and i had trouble securing accomodation in Nyali and Diani due to high occupancy rates.

I also had a chat with a hotel owner in Nyali who said that his hotel does a 70% rate on average.


Furniture is included in the construction.

The southern sunshine hotel location is along an international highway near Nairobi on the front row. This is the busiest highway in Kenya so the occupancy rates should be quite high.

Anyone passing through the highway will see the hotel so advertising rates will be reduced by virtue of being on the front row.

Here is the map of the location.

http://goo.gl/maps/Lp7oD[/quote]


@frank....i saw this on your website a few weeks ago,...... the hotel i am talking about is on Bamburi beach, next to severin etc....and so it is Quite prime real estate.

@horton, true..bamburi beach is prime real estate.
how much are the rates ? The location looks good for low occupancy. Maybe the rates/services/amenities are uncompetitive.

@mthaka..ondiri will be completely transformed once the southern bypass project completes. Nairobi CBD will shift from the current position towards Kikuyu/Ondiri/Thogoto.

@a4architect,
i own four acres in ondiri,am really wondering what to do with the parcel,i had a farm hand who was hasara tupu...hence the idea of a getaway

@A4Arch,
I believe the 1,400 room charge is subject to VAT so that actual cost to the customer will be 1,624 ?
Any good hotel should have power backup.Is this factored in the KES 1.74M ?
How many persons have signed up for the Southern Sun thus far?
What is the indicative share price for a similar project in Nakuru based on current land values?

I am curious to know whether the joint venture "Southern Sunshine hotel" was eventually constructed. If so, how does occupancy/income compare with earlier projections? Or please share any experiences/learned lessons from the project.