Luxury hospitality in Kenya is on the rise, with experts attributing the growth to factors such as increasing international visitors, a stable economy, and a rising middle class. The upcoming East Africa Property Investment (EAPI) Summit in Nairobi on May 7-8, 2025, will delve into the opportunities and challenges in this thriving market.
Bani Haddad, Founder and Managing Director of Aleph Hospitality, sees great potential in Kenya for hospitality investment due to its unique combination of factors. He points to a 35% increase in international visitors and a growing middle class with disposable income as indicators of the rising demand for quality hospitality services.
Mark Dunford, CEO of Knight Frank Kenya, emphasizes the importance of improved air connectivity to sustain growth in the hospitality sector. He believes that Jomo Kenyatta International Airport must remain a hub for the Sub-Saharan Africa region to support the influx of tourists.
Fiona Craw, Vice President of the Hotels & Hospitality Group at JLL Africa, notes that Nairobi and the Masai Mara area are attracting significant investment in the hospitality sector. She highlights the demand across sectors including corporate, leisure, MICE, and government as driving factors for growth.
Despite the promising opportunities, challenges such as security concerns, regulatory hurdles, supply chain disruptions, and human resource challenges are hindering the industry’s growth. Collaboration between the government and private sectors is essential to improve infrastructure, streamline land acquisition processes, and diversify suppliers to address these challenges.
Visa complexities are another obstacle that could impede the growth of Kenya’s luxury hospitality sector. Simplifying the visa/entry process could encourage more visitors and boost the industry.
While there is an oversupply of hotel rooms in Nairobi, pockets of growth and excellence exist. Marriott International, with a presence in Kenya operating city hotels in Nairobi and safari lodges in the Masai Mara, is seeing strong growth in its business. Jugal Khushalani, Marriott International’s Senior Director for Development in the East Africa region, sees an increased appetite for high-end experiences in the market.
Innovative strategies such as alternative financing models, sustainable tourism practices, enhanced air connectivity, and offering bespoke experiences are proposed to ensure sustained growth in the luxury market. With strategic investments and collaborative efforts, Kenya is poised to solidify its reputation as a premier destination for luxury travel in Africa.
The 12th East Africa Property Investment Summit will provide a platform for global investors, developers, and real estate professionals to explore investment potential in Kenya and other East African countries. For more information and to attend the EAPI Summit, visit https://EAPISummit.com.
