Investors are scrambling to build luxury hotels and serviced residences in Nairobi’s upmarket Gigiri neighbourhood, targeting growing demand from diplomats, business travellers and international organisations based in the area.
In the last two months, for example, three investors have announced plans to pour more than Sh5.5 billion into hospitality developments in Gigiri, which are expected to add a combined 587 accommodation units to the neighbourhood.
The developments are driven by Gigiri’s position as Nairobi’s diplomatic and international organisations hub, attracting embassies and multinational bodies like the United Nations. This makes it a ripe target for investors eyeing conferences and foreign visitors.
One of the projects is a Sh593.4 million hotel along United Nations Crescent, planned by Artesano Investment Limited.
Regulatory filings show that the proposed development will comprise an 11-storey hotel block with 152 accommodation units and supporting facilities and amenities.
The units will include 48 one-bedroom apartment suites, 24 two-bedroom apartment suites, 32 deluxe guest rooms and 48 standard guest rooms.
“The demand for quality hospitality accommodation within Nairobi City County continues to increase as a result of the growth of business travel, international diplomacy, conferences, tourism and foreign investment,” Artesano says in the filings.
The investor cites a growing number of international visitors, diplomats, business executives, conference delegates and expatriates in the neighbourhood as the major attraction to high-end accommodation facilities.
“The Gigiri Area, in particular, hosts the United Nations Office at Nairobi (UNON), numerous embassies, high commissions, international organisations and multinational institutions, all of which generate a sustained demand for modern hotel accommodation and related hospitality services,” says the company.
The site is currently occupied by a maisonette that will be demolished for the hotel’s construction.
Last month, Bahrain-based Gulf Hotels Group signed a deal with Kenya’s Silva Gigiri Ltd for the development of a $30 million (Sh3.9 billion) Silva Gigiri Hotel & Residence.
The project is also located on United Nations Crescent and will comprise 250 units spanning standard hotel rooms, studios, one- and two-bedroom residences and upscale penthouses.
It will also feature dining venues, wellness and fitness facilities, co-working spaces and a conference centre, according to a joint announcement by the two firms.
The project builds on Silva Gigiri Ltd’s existing presence in the district, where the developer operates the GLV Collection, a boutique-style luxury residence complex.
“Kenya stands out as one of [Africa]’s most promising hospitality markets, underpinned by robust economic fundamentals, expanding international connectivity, and rising demand for new, high-quality hospitality assets,” said Ahmed Janahi, Gulf Hotels Group’s CEO.
Construction is expected to begin in late August 2026, with a phased opening targeted for 2028.
Another investor, Season Global Limited, has lined up a Sh1.09 billion hotel in the neighbourhood.
Regulatory filings show that the private investor plans to develop a 10-storey building comprising 185 hotel suites alongside auxiliary facilities.
“The motivation for the establishment of the project is the existing high demand for hotel suites. The choice of the location was carefully assessed, driven by strong market demand,” the company said.
“Market analysis indicates a growing preference for hotel suites over conventional hotel rooms, especially among corporate and diplomatic travellers who require spacious, well-furnished accommodation with home-like features such as kitchenettes, workspaces, and extended stay flexibility,” it added.
Gigiri has attracted increased investment in hospitality, office and mixed-use developments owing to its strategic position as Nairobi’s diplomatic hub.
The neighbourhood hosts the United Nations Office at Nairobi, the United Nations Environment Programme and the United Nations Human Settlements Programme.
It also has numerous embassies and high commissions, including those of the United States, Canada, Australia, Sweden and Denmark.
The United Nations Office at Nairobi is also undergoing a $340 million (Sh44 billion) infrastructure expansion, which will make the Gigiri complex into the UN’s third-largest global hub.
Major entities including UNICEF, UN Women and UNFPA are relocating substantial global operations to the Nairobi campus.
The expansion, whose completion is targeted for 2030, will increase conference capacity from about 2,000 to 9,000 participants, creating an additional pool of potential clients for hotels and other hospitality businesses in the area.
The neighbourhood already hosts several hospitality establishments, including Trademark Hotel, Magna Hotel Suites, The Tribe, Comfort Gardens Hotel, Bonsai Villas, Gigiri Lion Villas and The Zehneria Portico Nairobi.
Several serviced apartment developments and restaurants have also emerged around Village Market and Rosslyn Riviera shopping malls, United Nations Crescent and Limuru Road.
The developments reflect a revival in Kenya’s hotel industry over the past three years amid a recovery in tourism and conference visits post the Covid-19 pandemic.
