Westlands Attracts Major Hotel Chains Amid Real Estate Boom

Nairobi's Westlands district continues to solidify its position as a prime destination for hospitality investment, punctuated by the recent announcement of Le Mirage Residences, a 33-storey hospitality-residential hybrid project. 

Unveiled at the 2025 Future Hospitality Summit Africa in Cape Town, the collaboration between regional hotel group CityBlue Hotels and local property developer SMB Properties exemplifies the district's escalating appeal. The project, scheduled for completion in the final quarter of 2027, aims to meet the growing demand for luxury accommodation tailored to affluent local and international clientele.

Westlands, now considered Nairobi's secondary commercial hub, is experiencing robust growth driven by corporate presence, infrastructural upgrades, and proximity to the Central Business District (CBD). This convergence of factors has turned the area into a magnet for real estate and tourism investment, as demonstrated by the influx of both international and local hotel brands.

CityBlue Hotels' Chief Executive, Jameel Verjee, describes Le Mirage Residences as a synthesis of lifestyle and long-term value. 

The project anticipates significant capital gains, estimated at up to 30 per cent within three years of completion, and a projected return on investment of 23 per cent. Situated on Parklands Road near Mayfair Casino, Le Mirage Residences will feature 256 serviced apartments and over 52,000 square feet dedicated to wellness, lifestyle, and recreational facilities. 

This positioning places it within an area already abundant with high-end amenities, further enhancing its attractiveness to high-net-worth individuals and expatriates seeking flexible accommodation options. While Le Mirage Residences signifies a significant statement of intent, it joins a growing list of hotel developments in Westlands. The district has witnessed a steady increase in the presence of both international and local hotel chains, intensifying competition and driving up standards for commercial real estate in Nairobi. 

Recent entrants include the US-based Hyatt House, which opened in February 2025 with 219 rooms. Other notable establishments include Park Inn by Radisson (2019), Best Western Plus Wetlands (2020), and French mid-scale chain Novotel, which launched a 347-room property with 13 meeting spaces and a grand ballroom in late 2024.Local brands have also been bolstering their presence in the district. PrideInn has expanded its portfolio with two key properties, PrideInn Azure Hotel on Lantana Road and PrideInn Westlands Luxury Boutique Hotel on Westlands Road. CityBlue Hotels has already established Skynest Residences along Mkungu Close, adjacent to the Movenpick Hotel and Residences, further consolidating its footprint in the area. Taher Saleh, Managing Director of SMB Properties, attributes the motivation behind Le Mirage Residences to the surge in demand for exclusive urban living. 

"This project is a direct response to the growing demand for high-end residential properties in Kenya," Saleh explains. "Its prime location, superior design, and comprehensive amenities will set new benchmarks in the market." He adds that the collaboration represents "the pinnacle of luxury and architectural innovation in Kenya."

The underlying economic rationale for developers and investors is rooted in Westlands' high land valuations. According to the Hass Property Index for Q1 2025, average land prices in Westlands stand at Sh488.8 million per acre, following a 4.9 per cent rise over the previous 12 months, only surpassed by Upper Hill, where land averages Sh537.8 million per acre. The concentration of top-tier corporate tenants reinforces Westlands' position as a centre of commercial activity. Global accounting firms such as Deloitte, PwC, KPMG, and PKF maintain offices in the district. 

Telecommunications giant Safaricom, the GTC Towers, and an increasing number of tech start-ups and financial institutions also call Westlands home. These anchor tenants support continued infrastructure development and drive demand for upscale housing among business travellers, expatriates, and long-term renters.

Beyond corporate credentials, infrastructure and entertainment contribute significantly to Westlands' appeal. Sakina Hassanali, Head of Development at Hass Consult, emphasises the area's broader advantages. 

"Westlands is the second CBD for Nairobi and an important commercial hub with a big Meetings, Incentives, Conference and Exhibitions potential," she says. "The fact that it's also an entertainment hub and has good access to the CBD makes it attractive to real estate investors."

The Nairobi Expressway's proximity further enhances Westlands' accessibility, a key factor in its growing desirability. This improved connectivity strengthens its appeal for hotel operators seeking to attract both domestic and international visitors.