Investors pour Sh5.5bn into Gigiri luxury hotels as UN hub expansion stokes demand
Written on
Three investors have announced plans worth more than Sh5.5 billion to build luxury hotels and serviced residences in Nairobi's Gigiri, targeting diplomats and international organisations as the UN campus expands.
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, 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, according to regulatory filings and company announcements.
One of the projects is a Sh593.4 million hotel along United Nations Crescent planned by Artesano Investment Limited. The proposed development comprises an 11-storey hotel block with 152 accommodation units, including 48 one-bedroom apartment suites, 24 two-bedroom apartment suites, 32 deluxe guest rooms and 48 standard guest rooms.
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, also on United Nations Crescent. The project will comprise 250 units spanning standard hotel rooms, studios, one- and two-bedroom residences and penthouses, with construction expected to begin in late August 2026 and a phased opening targeted for 2028.
A third investor, Season Global Limited, has lined up a Sh1.09 billion hotel in the neighbourhood, planning a 10-storey building comprising 185 hotel suites alongside auxiliary facilities. The company cited strong demand for hotel suites, especially among corporate and diplomatic travellers seeking spacious accommodation with kitchenettes and workspaces.
The developments are driven by Gigiri's position as Nairobi's diplomatic and international organisations hub. The United Nations Office at Nairobi (UNON) is undergoing a $340 million (Sh44 billion) infrastructure expansion targeting completion by 2030, which will raise its conference capacity from about 2,000 to 9,000 participants and create an additional pool of potential clients for hotels in the area.