The rise of serviced apartments in Nairobi

Studio apartments at Mvuli Suites in Nairobi.

In October 2016, a report by Cytonn Investments indicated that serviced apartments in Nairobi outperformed hotels in occupancy and returns. The report said the average occupancy for serviced apartments was 90 per cent and the revenue per room per night was Sh12,700. This occupancy level was 29.6 per cent higher than that of hotels, and 33.5 per cent cheaper on average than an hotel room.

Sometimes called serviced apartments, furnished apartments are taking root in Kenya. “In terms of occupancy and location, the best markets for investing in the hospitality sector are serviced apartments in Nairobi, three and five-star hotels in Masai Mara and business hotels in Nairobi,” Elizabeth Nkukuu, Cytonn’s chief investment officer, said at the time.