A view of the Nairobi city skyline.
International hotel developers have sharply increased investments in Nairobi, pushing the capital city back into the spotlight even as expansion in upcountry destinations continues to gather pace.
Fresh industry data shows that new hotel construction projects by international chains have risen 58.3 percent to 3,650 rooms in 2026, up from 2,306 rooms recorded last year, marking a strong rebound in investor appetite for the city.
The jump signals renewed confidence in Nairobi’s position as a regional business and conferencing hub, reversing last year’s trend where developers had shifted focus to emerging tourism circuits outside the capital.
An update by Lagos-based advisory W Hospitality Group shows that countrywide, the pipeline has expanded 42.5 percent with 35 hotels accounting for a combined 6,190 rooms under development, up from 4,344 rooms last year.
This means projects outside the capital have grown to 2,540 rooms, up from 2,038 rooms last year.
Nairobi skyline on December 31, 2023.
W Hospitality Group compiles the data based on private disclosures by 50 leading hotel chains operating in Africa on deals made for either planned or ongoing construction of hotels in any of the 54 countries in Africa.
Nairobi’s rebound comes after a year in which the city lost its position among Africa’s top development hotspots, as investors redirected projects to areas seen as offering untapped growth and less competition.
Industry players had at the time pointed to Nairobi’s relative maturity, with most global hotel brands already represented, as a key factor behind the shift to upcountry locations.
The latest figures, however, suggest that demand fundamentals in the capital remain strong, supported by its role as East Africa’s primary business, diplomatic, and logistics hub.
The capital continues to benefit from sustained corporate travel, conferences, and international events, which have historically underpinned steady occupancy rates and investor confidence.
Improved connectivity through air transport and road infrastructure has also reinforced Nairobi’s position as a gateway into the wider region, further supporting hotel demand.
According to the W Hospitality Group data, 79.5 percent of the pipeline rooms, equivalent to 4,922, are already under active construction.
“Ethiopia and Kenya have the highest ratio of rooms under construction, followed by Tanzania and South Africa,” the report notes.
On the continental scale, Kenya ranks fourth among the top investment destinations, falling behind Egypt, Morocco, and Nigeria in total hotel development pipeline this year.
