TPS Eastern Africa Plc, the operator of the Serena brand of hotels, is investing hundreds of millions of shillings to upgrade its top properties in the region as the hospitality sector continues to register growth.
The company says the eight properties including Nairobi Serena will remain operational through the renovations. The improvements are aimed at enhancing guest experience and increasing the company’s market share at a time when tourism has rebounded and meetings and conferences are also recovering after the 2020 Covid-19 pandemic.
“As long-term investors and given our commitment to destination East Africa, a phased refurbishment plan for our flagship city hotels: Nairobi Serena, Dar es Salaam Serena, Kampala Serena, Arusha Serena, and Kigali Serena, Lake Kivu Serena, Zanzibar Serena and Mombasa Serena is set to commence in 2025,” the company said in latest annual report.
“Our hotels will continue to operate while the refurbishments will be carried out with minimal disruption to guest services.”
The upgrades at the various properties include expansion and installation of new facilities including swimming pools, meeting rooms and live cooking kitchen.
“Guided by feedback from guests and other stakeholders, the group has commenced phased refurbishments across key properties to enhance comfort, functionality, and overall guest satisfaction —while preserving the brand’s distinctive architectural and cultural heritage,” the company said.
The company spent a cumulative $58 million (Sh7.5 billion) on property renovations and expansion in the 12 years to 2024, according to the report.
Its annual capital expenditure on property upgrades runs at about four percent of revenues for each of its key markets —Kenya, Tanzania, Zanzibar and Uganda.
The company reinstated dividends after growing its profit 2.8 times in the year ended December 2024. It declared a dividend of Sh0.35 per share or a total of Sh98.9 million, payable on July 30 to shareholders.
The listed hospitality firm recorded a net profit of Sh1.3 billion in the review period, up from Sh457.7 million a year earlier. The company’s revenue for the year rose 5.2 per cent to Sh10.1 billion which it attributed to all subsidiaries delivering positive earnings.
Competition in the Kenyan hospitality sector has been on the up with more international brands setting up in the country. The country saw 2.5 million beds come into the market last year, pushing the available beds to 35.5 million.
