Westlands: Key hospitality hub attracting big hotel chains

Nairobi's Westlands area is rapidly developing into a key hospitality hub as more local and international hotel brands seek a piece of the city's suburb.

Located less than a kilometre from the capital city's Central Business District (CBD, the area has become a commercial and leisure destination with more tourists and businesses attracted to it.

The fact that Westlands is a home to top multinational corporations, including audit giants Deloitte, PKF, PwC, KPMG East Africa, financial institutions, motor firms and tech startups, makes it a hotspot for business professionals and also a source for sustained rental income. It also hosts key head offices for major brands such as Safaricom, GTC Towers and malls.

This is coupled with high returns on investments, with capital growth of 14 per cent annually and rental yields of up to 12 per cent annually. The place is now a perfect choice for business executives, expatriates looking for convenience.

One of the latest entries of the hotel chain is CityBlue Hotels, which last week announced a strategic partnership to construct a 256-unit hotel called Le Mirage Residences by CityBlue.

However, it’s not the first time CityBlue Hotels has set foot in Westlands. It already has Skynest Residences by CityBlue along Mkungu Close off Parklands Road, just next to the Movenpick Hotel and Residences Nairobi.

More and more branded hotels have since been opening up in the area, with the latest being US-based Hyatt House, which opened its doors in February this year with 219 hotel rooms.

Along Waiyaki Way, there exists Parkin By Radisson Nairobi Westlands, which was opened in 2019. There is also Best Western Plus Wetlands along Kanuna Road, which opened in December 2020.

Local hotel chain PrideInn has two hotels, PrideInn Azure Hotel Nairobi, Westlands, along Lantana Road and PrideInn Westlands Luxury Boutique Hotel along Westlands Road.

Towards the end of last year, French mid-scale hotel chain Novotel and which is owned by Accor Group, opened along Lower Kabete Road. The hotel includes 347 rooms, 13 meeting spaces, and a ballroom that can host more than 100 guests.

The construction of Le Mirage Residences by CityBlue is expected to be complete by the last quarter of 2027 and will feature luxurious 33-floor high one, two and three-bedroom apartments. It will be done by SMB Properties, a property developer in Kenya.

According to the two, the collaboration will boost upscale residential living in Nairobi, with Le Mirage Residences by CityBlue poised to become one of Kenya’s tallest towers.

The announcement, which was made at the recent Future Hospitality Summit Africa 2025 in Cape Town, South Africa, marks a significant milestone for both entities and Kenya’s real estate market.

CityBlue Hotels' chief executive Jameel Verjee said the residences will offer a better living experience, combining SMB Properties’ expertise in crafting exquisite residential spaces with CityBlue Hotels’ hospitality management.

Located along Parklands Road near Mayfair Casino, CityBlue said the hotel is designed to cater for high-net-worth individuals and expatriates seeking premium living for a night, week, month and longer stay.

The development, which is expected to be ready in the last quarter of 2027, will also be complemented by over 22 world-class amenities. These include over 52,000 square feet of space dedicated to wellness, lifestyle and recreational amenities, among others.

With Kenya emerging as a prime investment destination in Africa, Verjee said Le Mirage Residences by CityBlue presents a unique opportunity for investors to be part of this growth.

He noted that with projected capital appreciation of up to 30 per cent in three years after completion and a Return on Investment of up to 23 per cent, the development combines lifestyle with long-term financial returns.

“This partnership demonstrates a commitment to a relentless quest for a footprint in key African markets and diversifying our offerings beyond traditional hotels,” said Verjee.

“Nairobi’s dynamic real estate landscape presents a unique opportunity to blend our expertise in hospitality with SMB Properties’ vision for luxury residential development. Le Mirage Residences by CityBlue will deliver the signature CityBlue experience, ensuring comfort, convenience and unparalleled service for our residents.”

Managing Director of SMB Properties Taher Saleh said Le Mirage Residences by CityBlue represents the pinnacle of luxury and architectural innovation in Kenya. “We are proud to collaborate with CityBlue Hotels, a brand synonymous with excellence in hospitality, to create a landmark that will stand as a beacon of modern living in Nairobi,” said Saleh.

“This project is a direct response to the growing demand for high-end residential properties in Kenya, and we are confident that its prime location, superior design, and comprehensive amenities will set new benchmarks in the market.”

According to Sakina Hassanali, head of development at Hass Consult, proximity to the CBD, direct access to the Nairobi expressway are among the reasons Westlands is attracting investors to the area, regardless of high land prices.

“Westlands is the second CBD for Nairobi and an important commercial hub with a big Meetings, Incentives, Conference and Exhibitions potential, thus making it an ideal area for business tourism,” said Ms Hassanali.

“The fact that it’s also an entertainment hub and has good access to the CBD makes it attractive to real estate investors.” According to HassConcult’s Hass Property Index for the first quarter of 2025, land prices averaged Sh488.8 million per acre.

The report also indicated a 4.9 per cent increase in land prices over the past year, with a 0.3 per cent increase in the last quarter, with land per acre averaging between Sh404 million to Sh550 million.

Westlands became second in Nairobi’s 18 surburbs with high cost of land after Upper Hill, whose land rose by 2.9 percent in the first quarter to sell at Sh537.8 million per acre and averaging Sh428.6 million to Sh560 million.