The iconic 51-year-old InterContinental Nairobi Hotel is set to close its operations in September over stalled business.
According to media reports, the hotel issued a notice of intention to declare employee redundancies within 45 days, citing operational reasons.
"We write to inform you that InterContinental Hotels Corporation Limited Kenya (IHCL) is for operational reasons, considering a permanent closure of InterContinental Nairobi and winding up its operations in the Republic of Kenya," Kenyan publication Citizen Digital reported, quoting an employee.
"As a consequence of such intended winding up, all employment positions would become redundant."
The hotel management did not disclose whether its woes were linked to the Covid-19 pandemic which has so far claimed casualties in the hospitality industry including the Norfolk Hotel.
Globally, the coronavirus pandemic has left many businesses struggling to stay afloat.
The tourism and hospitality industries have been largely affected following lockdowns and travel restrictions in various countries.
In early April, InterContinental Nairobi had announced that as a result of the Covid-19 pandemic, and for the first time in history, it was temporarily closing until further notice.
But at the time, its management indicated that it looked forward to resuming hotel operations soon.