Rise of hotel-branded residences to meet the needs of modern guests

There is a growing wave in town. In a marked departure from the norm where hotels only sold the traditional rooms for accommodation, major hotels are adding the term ‘residences’ to their names. These residences, or private suites, have been developed to cater for long-term guests.

In Kenya, some of the hotels offering this kind of accommodation include Mövenpick Hotel & Residence Nairobi, Dusit Princess Hotel and Residences, and Radisson Blu Hotel and Residence Arboretum.

In this neighbourhood too, is the newest kid on the block, JW Marriott Hotel, which has stirred the market with 51 serviced apartments including three-bedroom apartments with a maximum occupancy of seven people each.

On the edge of Karura Forest, Kwetu Nairobi, Curio Collection by Hilton with its African-themed detail, will propagate the legacy of the globally acclaimed group through apartment-style living.

Sarova Panafric, one of the more established hotels in the city, has been running 42 serviced apartments for decades. 

At the Coast, Sun N Sand Resort in Kikambala offers a wide range of residences including executive suites that can accommodate a family of more than six people.

Further North in Watamu, Hemingways Residences, a cluster of 21 exclusive apartments afford investors the ability to invest in the hospitality industry by purchasing a unit and earning earn a guaranteed fixed return of seven per cent for the first five years before handing it over to the developer for rental income generation.

What though is informing the rising trend of hotel residences in the local hospitality industry?

Ross Evans, chief executive officer at Hemingways Collection, says there exists a large and unmet demand for residences within Kenya’s leading hospitality brands.

For example, Evans says the group’s residences in Watamu, Kilifi, offer an investment proposition and a lifestyle opportunity for guests and brand supporters in an upmarket hotel environment. For investors, the prices of the apartments range from Sh52.5 million to Sh150 million.

“By becoming an owner of a residence, we are offering the best of both worlds. These include a sublimely spacious and luxurious coastal residence in one of Kenya’s most sought-after coastal destinations combined with a unique investment opportunity with a timely revenue-earning model. This offers peace of mind during a holiday with family and friends. In a residence setting, everything is taken care of and you can enjoy your holiday without worry,” says Evans.

Major hotel chains are keenly aware of the competition brought about by the influx of serviced apartments around the globe that are serving as alternative means of accommodation. In Nairobi’s Kilimani, Kileleshwa and Lavington suburbs, such serviced apartments have taken entire buildings and giving the hotels a run for their money.

Are these hotel residences about to change the traditional hotel business model?

“Not really,” says Randy Ngala, the marketing and communications manager at Mövenpick Hotel & Residence Nairobi. “I don’t think the model is changing the traditional hotel model but adapting to modern-day needs that come with the times.”

Ngala says with modern-day work operations where individuals or families have to travel together for extended periods, it becomes a struggle to stay in confined spaces with just a bed and bathroom.

Mike Macharia, chief executive officer at Kenya Association of Hotelkeepers and Caterers says the sustained growth in key economic sectors has pushed up the uptake of hotel residences.

“There is always a demand for long-term accommodation options in Nairobi. When banks were going the digital way global technicians were coming to spend close to a year here when making interbranch connections. Some stayed here for 24 months and a hotel room would have been a lonely place. In the residences, such people can host visitors and discuss business matters,” says Macharia.