Africa -  Kenya - Nairobi

For a comprehensive review of the Africa market, click below:
HVS In-Depth Africa Hotel Valuation Index:   2021 | 2016 | 2015 | 2014

Kenya had a significant growth in international arrivals, 14% in 2018 compared to 2017 (2017 saw an extended election cycle).  The country’s performance was bolstered by increased marketing through the Kenya Tourism Board combined with:

  • The lifting of travel advisories by key source countries
  • Improved confidence in the market with a significant number of international conferences (6.8% increase) and the hosting of several international dignitaries.
  • Improved security
  • The launch of direct flights from Nairobi to New York in October 2018 by Kenya Airways
  • The open border policy for Africans where they can get a visa on arrival in Kenya as well as the single East African Passport


Nairobi’s RevPAR increased by 9.5% driven mainly by an increase in occupancy in 2018. The market has shown resilience in the face of excessive supply and remains a key hotel market in East Africa. The growing economy and domestic travel have bolstered the tourism sector, however, the security incidents in the capital have not allowed the market to reach its potential. The dramatic start to 2019 with the attack at Dusit D2 severely affected hotel performance and is making it a struggle to catch up with 2018 RevPAR levels, however, with the increase in investor confidence; the launch of the Africa Open Skies Policy - The Single Africa Air Transport Market (SAATM) and all the other activities being undertaken by the Kenya Tourism Board, Kenya is anticipated to rally back by 2020.

International Brand confidence continues to grow in 2019 with the recently announced MGallery by Accor in Gigiri; Radisson Hotel and Residence at the Arboretum; Dusit Princess, an apartment hotel located in Westlands, scheduled to open later this year.

The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide. Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the hospitality investment market.

In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.

Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide insights on the likely trajectory of decline and recovery for hotel values.

For the Latest Information and Analysis on the Impact of COVID-19Click Here

If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact us directly.

For more information, please contact:

Rishabh Thapar, MRICS
[email protected]
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