Cytonn ventures into hospitality industry
Kenya National Chamber of Commerce and Industry president Richard Ngatia (centre) cuts a tape to open the CySuites Apartment hotel by Cytonn Investments Company in Westlands, Nairobi on November 23, 2019. Looking on are Cytonn CEO Edwin Dande (left) and the firm's board chairman Prof Daniel Mugendi Njiru. PHOTO | FRANCIS MUREITHI | NATION MEDIA GROUP
What you need to know:
Mr Ngatia lauded Cytonn for launching CySuites saying it has created more than 100 direct jobs.
Cytonn Investments board chairman Daniel Mugendi Njiru said serviced apartments have returns of about 20 per cent per annum.
Cytonn, a financial investment company in Kenya, has ventured into hospitality industry to diversify its financial base.
The firm’s Chief Executive Officer Edwin Dande said CySuites apartment hotel in Westlands, Nairobi, offers amenities to meet the needs of short and extended stays to travellers.
The new investment comes after a successful real estate venture which has seen more than 8,000 clients invest Sh12 billion in real estate sector.
“Serviced apartments charge lower rates per night than hotels, provide larger spaces and have a home feel. This project aims at positioning Cytonn in the new investment frontier,” said Mr Dande.
SERVICED APARTMENTS
He said returns from serviced apartments range between 8 -10 per cent while unserviced ones earn four per cent.
The multimillion complex which offers 32- two bedroom apartments, six one-bedroom apartments and two penthouses were opened on Saturday by Kenya National Chamber of Commerce and Industry president Richard Ngatia.
Mr Ngatia lauded Cytonn for launching CySuites saying it has created more than 100 direct jobs. Mr Dande assured clients of better returns.
He noted that although the Kenyan economy is struggling, with many layoffs, lack of access to credit, high levels of debt, uncertainty and turbulence, there was still hope for growth in the economy.
“Kenyan economy remains promising, we have a strong entrepreneurial culture and investing is a wise thing to do,” he added.
BETTER ECONOMY
He continued: “If you look across all the industry from Jua Kali to technology, education, banking, real estate, serviced apartments, Kenya has committed entrepreneurs and this gives hope for a better economy.”
He announced that Kenya is still the most preferred investment destination. He said Kenya is the global home of mobile money transfer that transacts billions of shillings daily.
He said that Cytonn will follow in the footsteps of the MPesa success and turn its popular money market fund into a high yielding wallet to its clients.
“What sets us apart from our competitors is the extensive research we do before committing billions of shillings in the projects we undertake. Our money market fund will soon be a global winner just like MPesa,” he explained.
Some of the projects undertaken by the company include the ongoing construction of Villas in Karen, Amara Ridge, Applewood and Situ Village.
TOURISM
The company has also invested in Kiambu County and is undertaking four projects -Taraji, Alma, Ridgeways and Riverrun and Newtown in Athi River in Machakos County.
Kiambu County Minister for Lands James Maina who is also a board member of Cytonn Investments said serviced apartments in Westlands have an average of 85 per cent occupancy rate.
Cytonn Investments board chairman Daniel Mugendi Njiru said serviced apartments have returns of about 20 per cent per annum.
“CySuites apartment falls into tourism sector which is a key driver of the Kenyan economy. The investment will create jobs along the value chain,” said Prof Mugendi.
