Kenya’s Hotel Sector Expands on Surging Tourism, New Report Shows

Kenya’s hospitality sector saw a significant expansion in 2024, with the supply of new hotel rooms more than doubling alongside a sharp increase in tourist arrivals.

However, experts predict that overall growth in hotel development will remain subdued over the next two years.

At least 2.5 million tourists visited Kenya in 2024, marking a substantial increase from the 2.09 million recorded in 2023. The 2023 figures had already reflected a strong rebound, rising 35.4% from 2022, demonstrating the sector’s post-pandemic recovery.

Hotel Development Trends

According to Knight Frank’s H2-2024 Real Estate Market Performance report, new hotel room supply increased from 550 in 2023 to approximately 1,350 in 2024. The majority of these developments were in the luxury and upscale segments, catering to high-end travelers and business tourists.

Kenya has set an ambitious target of attracting 5 million visitors annually by 2027, a goal supported by the introduction of new flight routes, such as AirAsia’s direct connection between Nairobi and Kuala Lumpur.

Also Read: Knight Frank appointed leasing agent for Kenya’s tallest building, GTC

Hotel Openings and Upcoming Developments

Several high-profile hotel projects were completed in 2024, including:

Novotel Westlands (347 rooms)
Hyatt House & Hyatt Place (233 rooms combined)
Okash Hotel Nairobi (56 rooms)
Treetops Hotel – Reopened after renovations and a prolonged closure due to COVID-19

A major upcoming development is the Courtyard Hotel near Jomo Kenyatta International Airport (JKIA) in Nairobi. With an estimated investment of KES 1.2 billion, the 180-room Marriott International brand hotel will be the second Marriott-operated facility near JKIA, following the Four Points by Sheraton.

Industry Insights and Sustainability Efforts

Speaking to The Kenyan WallStreet, Paul Stevens, Chief Operating Officer of Accor’s Premium, Midscale & Economy Division for the Middle East & Africa, described the opening of Novotel as a strategic entry into African markets.

“The hotel offers a gateway to Nairobi’s vibrant experiences and marks a significant milestone in our growth strategy as we continue to expand our footprint in key markets across the continent while enriching local communities,” Stevens said.

In addition to expansion efforts, the hotel also announced a three-year partnership with the World Wide Fund for Nature (WWF) to support the protection and restoration of the world’s oceans. This collaboration aligns with global sustainability initiatives aimed at mitigating climate change through science-based conservation projects.

Outlook

Despite recent expansion, the pace of new hotel developments is expected to slow over the next two years. Industry analysts cite factors such as economic uncertainty, financing constraints, and shifting market dynamics as potential reasons for the subdued growth outlook.

Nevertheless, with Kenya’s tourism sector on an upward trajectory and continued infrastructure investments, the country remains a key player in Africa’s hospitality industry.

February 10, 2025

511 2 minutes read

Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.