Serviced apartments fast gaining popularity in Kenya

Serviced apartments are fast gaining recognition as a core part of Kenya’s hospitality industry.

Industry experts say the new concept; common globally is quickly finding footing in the local market as the country continues to see a robust growth in tourism industry particularly in the travel sector.

With more number of foreign companies establishing base in the country’s big cities, the industry has seen tremendous momentum in the past one year, according to Rajpal Sahib, chief executive of Realto Group – a real estate investment company.

“Serviced apartments in the world has grown by over 80 per cent since 2008 to about 750,000 according to a report by Apartment Service, which is a global provider of short term accommodation, and this concept is fast gaining popularity in Kenya,” he says.

According to Knight Frank, multinationals have also become more cost conscious when looking for short term rentals and are keen on cutting the expenses – thus now showing an inclination towards serviced apartments rather than hotels on the basis of cost as well.

Start-ups such as SOHO Serviced Apartments are building themselves an ultra-modern 11 storied serviced hotel apartment in Kilimani area at a cost of Sh1.billion – coming at a time when Nairobi has been listed among global cities set to enjoy a surge in short let accommodation.

“The location of SOHO Serviced Apartments is very convenient as we tap into the international organisations and embassies currently relocating offices to this area,” said Rajpal, adding that the concept is poised to attract more investments in the sector in the coming years.

Observers claim the demand for this concept is majorly driven by the surge of companies, NGO’s and individuals visiting the country on short term business trips and are in need of ‘home’ complete with hotel like amenities.

A serviced apartment is a fully furnished residence available for both short-term and long-term stays, providing all the hotel-like facilities.

The apartments typically include soft-furnishings and cooking utensils so that long-term tenants need not to bring their own, and have services such as housekeeping, front office and parking included in the rent.

Nairobi is currently the leading location in demand with searches for short let space standing at 29.61 per cent, ahead of Mombasa at 14.70 per cent, followed closely by Naivasha at 12.71per cent. This is despite the city taking crown for having the highest number of hotel rooms – with an estimated 58,071 rooms.

A studio apartment in Nairobi on present rates, cost on average $64 per night, compared to a walk in rate of an international-standard hotel room in Nairobi that would ordinarily cost as high as $ 220 to $ 350 a night.

This concept is widely expected will provide a variety not just for the international clientele but also to domestic tourist – giving them an option to have a homely visit while in Kenya, according to Rajpal.