Surge in high-end hotels spurs visits by foreign tourists

Real Estate
By Graham Kajilwa | Jan 23, 2025
Igor Jovovic Area vice president Hyatt regency,address press during official grand opening of Hyatt Regency on 22nd January 2025 in Westland Nairobi. [Edward Kiplimo, Standard]

High-end hotels are slowly becoming a norm in Nairobi with the recent entrant of Hyatt Regency. The hotel chain officially opened on Wednesday, revealing plans for more outfits in the market.

Bigger rooms, bigger televisions, a spa, and a yoga studio are some of the luxuries it offers in a bid to attract its global clientele into the Kenyan market.

Just a stone’s throw away from Hyatt Regency Nairobi stands GTC Residence Apartments, JW Marriott and Kempinski, also considered to be high-end hotels.

JW Marriott was opened in March 2024 by President William Ruto.

This surge in high-end hotels paints a picture of a thriving hospitality industry that is slowly transforming the real estate sector. This is as hoteliers strive to attract business and leisure clientele.

But who are these foreign visitors behind this surge in high-end hotels and residences?

Group Managing Director of Go Places Nev Jiwani, an intermediary business between hotels and guests in the hospitality industry, and expert in foreign clients’ demands, notes this trend saying even room sizes have changed over the years. She said hotels are striving to ensure these guests feel home away from home and are willing to go the extra mile. “Previously, we used to have small rooms. These days we have new establishments that are more spacious and you feel you are in your home,” she stated

Yet these hotel amenities are not the only thing these guests want to enjoy when they land in the country.

Ms Jiwani noted that while the guests come to the country mainly for business through conferences and meetings, they also seek to enjoy the luxuries offered locally and are willing to extend their trips.

Wildlife, mountain climbing, street food, destination weddings, and shopping are some of the activities that are at times tailored into their packages.

“People coming to Kenya want to exchange vows in the Maasai inland or the manyatta. They want to do it traditionally in some way and mix the local with international experience which they have never had before,” she observed.

She said the need for amenities such as yoga studios, gyms and health clubs to cater for these guests is something she also fancies when she travels.

“Even with competition, every hotel has its own charm.  I can’t say one brand is better than the other. We bring in clients but we give them choices,” says Ms Jiwani. The need for these amenities has been mentioned in the Tourism Sector Performance Report 2023 by the Tourism Research Institute.

The report says wellness and spa hotels are in line with the trend around preventative medicine and self-care, owing to the trillion-dollar market.

“Hospitality venues, particularly those equipped with spa facilities, are strategically positioned to capitalise on this trend,” noted the report.

“Beyond traditional spa services focused on beauty and relaxation, there is a rising demand for health diagnostic technology and personalised treatment plans.”

The report noted that for contemporary travellers, personalised experiences are no longer considered a luxury but a prerequisite.

“80 per cent of consumers seek tailored experiences from retailers, and the tourism industry is no exception. From pre-booking to post-stay interactions, customers expect every interaction point to be in sync with their preferences and inspire potential tourism,” the report says.

Director of Sales and Marketing at Hyatt Regency Denis Glibic describes Kenya as a magical market, hinting that as the global brand expands, more franchises will be opened in the country.

“It is one of the fastest-growing markets in tourism. As far as I am concerned, everyone wants to come to Kenya. You may have seen more hotels opening in the last six months so it is very optimistic,” he says.

He said the high-end clientele business model is based on demand as Nairobi City is not only the headquarters of international bodies such as the United Nations but also receives many visitors courtesy of Kenya Airways and other airlines that serve guests.

“We are high-end and this means we have bigger rooms, bigger televisions, more services and 24-hour room service which not many hotels are offering.  This is just another addition to the market which sets us a little apart,” he said.

In 2023, the number of tourist arrivals stood at 2.087 million compared to 1.5 million in 2022, and 871,000 in 2021, according to the Kenya National Bureau of Statistics. According to a statement from Hyatt Hotels Corporation, the Nairobi City brand is meant to cater for the diverse needs of modern travellers.

“The five-star property aims to offer unmatched hospitality experience, combining elements of Kenya’s local culture with Hyatt Regency brand; signature service,” noted the statement.

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