How personalised developments are reshaping local property market

Kenya’s hospitality real estate sector is undergoing a structural shift as developers increasingly design properties around experience, sustainability, and lifestyle, reflecting changing consumer preferences and growing investor interest in high-end tourism assets.

This transition comes at a time when the country’s travel and tourism sector is projected to contribute over Sh1.2 trillion to the economy in 2025, equivalent to more than seven per cent of the gross domestic product (GDP) and supporting about 1.7 million jobs.

“By 2035, Kenya’s tourism sector is projected to contribute Sh1.8 trillion to the economy and support over 2.2 million jobs, with about 500,000 new jobs expected over the next decade,” the World Travel & Tourism Council report states.

“International visitor spending is forecast to reach Sh409 billion, while domestic spending is expected to hit Sh821 billion. In 2024, the sector contributed Sh1.2 trillion to the economy, marking a 10 per cent increase, and supported 1.7 million jobs, with international visitors spending Sh288 billion and domestic travellers spending Sh528 billion.”

The shift is anchored in the performance of the real estate sector, which contributed about 8.1 per cent to Kenya’s GDP in 2025. Continued growth is driven by increased property development, urbanisation, and rising demand for lifestyle-oriented investments. Amid these changes, Gem Forest Hotel Nairobi – MGallery Collection exemplifies how Kenya’s hospitality developments are adapting to new trends.

Situated near Karura Forest in Nairobi, the hotel is designed around the natural rivers that run through the property, blending urban convenience with nature.

The concept behind the hotel, according to its Chief Executive Jiggar Patel, was to create “a luxury boutique hotel connected to nature” that offers something distinct from traditional city hotels. “We wanted to combine architecture, nature, wellness, and hospitality to fill the gap for experience-driven luxury. Our approach highlights the growing preference for hotels that provide unique experiences while integrating sustainability and lifestyle elements into their design,” he said. The construction of a mega-beachfront convention centre in Mombasa by the PrideInn Group is also meant to boost tourism. It offers the latest architectural masterpiece.

The Tembo International Convention Centre, located in the North Coast, will be one of the largest purpose-built convention and event destinations with the capacity to host up to 8,000 guests. 

“The facility is expected to significantly elevate Mombasa’s position as a premier hub for international conferences, large-scale events, and cultural gatherings, while supporting the continued growth of Kenya’s MICE tourism sector,” explains PrideInn Group Managing Director Hasnain Noorani.

According to the Cytonn Annual Market Review 2025, Nairobi’s serviced apartment market saw occupancy rates rise to 74.7 per cent in 2025, up from 72.2 per cent in 2024, while rental yields edged up to 7.4 per cent, signalling improving investor returns in hospitality-linked real estate.

Efficient systems

Mr Patel said the choice of location played a critical role in shaping the development. “We wanted it to feel like the building is within the forest. Calm, natural colour palettes and materials such as wood, stone, and glass were selected to reinforce this identity,” he said.

Across the sector, sustainability is increasingly being adopted not just as an environmental requirement but as a core investment strategy.

Developers are prioritising long-lasting materials, efficient systems, and operational cost management to improve long-term returns while meeting the expectations of environmentally conscious consumers. The integration of wellness spaces within hospitality developments is also becoming a key differentiator. Industry reports indicate that travellers increasingly prioritise wellness, personalised experiences, and lifestyle offerings when choosing accommodation, pushing developers to rethink traditional hotel models.

This shift is supported by broader market dynamics. Kenya’s real estate sector grew by about 5.6 per cent in 2025, driven by infrastructure development, investor confidence, and rising demand for high-quality properties in prime urban locations. According to Knight Frank Kenya Market Update Half year 2025, international tourist arrivals increased by 3.5 per cent in early 2025, with Kenya ranked Africa’s fourth-best tourism destination. The sector saw landmark investments, including Marriott’s luxury tented camps in the Masai Mara and Radisson Blu’s Sh4.3 billion expansion in Nairobi. Serviced apartments also gained traction, catering to blended work-leisure travel trends.

“Kenya’s hospitality sector is redefining luxury through eco-conscious developments and experiential offerings. With major international brands looking to either increase their footprint or enter the market, the country is solidifying its status as one of Africa’s premier tourism and MICE destinations,” said Knight Frank Kenya Chief Executive Mark Dunford.

Globally, the hospitality industry is witnessing a similar transformation, with developers investing in boutique, design-led properties that prioritise experience, sustainability, and brand identity. In markets across Europe, Asia, and the Middle East, mixed-use and lifestyle-driven developments are becoming the standard, signalling a shift in how real estate value is defined.

For Kenya, this convergence of global and local trends presents both opportunity and competition. Regional markets such as Rwanda and South Africa are also investing heavily in high-end hospitality infrastructure, increasing pressure on local developers to innovate. For developments like Gem Forest Hotel, the focus is on long-term value creation, ensuring that the property remains adaptable to evolving consumer demands.

“Today’s traveller is actively seeking luxury, but not in the traditional sense; it’s about experience, comfort, and uniqueness. People are willing to invest more in spaces that offer a distinct lifestyle feel, which is why we focused on creating a destination that delivers that level of luxury within the city,” Patel said.

Wellness is rapidly emerging as a central pillar in the evolution of hospitality, driven by shifting consumer preferences and the growing global focus on health and well-being. According to the Global Wellness Institute, the global wellness economy reached $6.8 trillion (Sh880.6 trillion) in 2024, with wellness tourism alone projected to surpass $1 trillion (Sh129 trillion), making it one of the fastest-growing segments in travel.

This surge is influencing how hotels are conceptualised and operated, with developers increasingly embedding wellness into the core of their offerings.

According to Wahome Kariuki, founder of Thought Viewpoint and the Tetu Campaign, the shift marks a fundamental redefinition of value in the property market. “Real estate is no longer just about providing space; it is about creating experiences. Developers are now being forced to rethink how their projects make people feel, not just how they function,” he said.

From boutique eco-lodges to nature-integrated urban hotels, developers are increasingly designing properties that offer a sense of place, identity, and connection to the environment.

“Location is now doing more than just determining value; it is shaping the entire experience. Developments near forests, parks, and other natural features are gaining a competitive edge; people want something unique,” Kariuki said.