Real estate company Cytonn launched a new real estate project in the leafy suburbs of Westlands.
The project, Cysuites is a serviced apartment hotel along church road in Westlands. The launch of the furnished apartments follows a buyout of the Wasini Resorts, which they acquired in September.
Cytonn CEO, Edwin Dande said that there was a gap in the serviced apartments sector as people were not getting the best services. Dande added saying that Cysuites was the first of many similar projects by Cytonn.
“This is the first step of what we hope will be the leading brand in serviced apartments hotel,” the Cytonn Group CEO said during the open day launch of the project.
He further noted that the economy might be bad right now but entrepreneurship will help it get back and Cyton is contributing greatly to that.
“It s clear that the economy is struggling right now but it is also a no question that the Kenyan economy remains promising because we have a strong entrepreneurial culture,” he remarked mentioning other factors that make Kenyan economy remain promising.
Previously, Cytonn has developed and sold the Amara Ridge in Karen, which was completed and handed over in 2018, and The Alma in Ruaka, Phase 1 of which is 100 percent sold and handed over to clients.
Other projects include The Ridge, RiverRun, Taraji Heights, Applewood and Newtown.
Demand for serviced apartments has continued to increase as evidenced by the 8.0 percent points increase in occupancy levels in 2018 to an average of 80.0 percent, from 72.0 percent in 2017, supported by benefits that come with the theme. This is according to research done by Cytonn Group.
According to Cytonn’s head of private equity (real estate), Shiv Arora, the company is grabbing an opportunity presented by lack of a single furnished apartments’ operator especially within Nairobi’s Westlands, Kilimani and Upper Hill.
More furnished apartments are also under development at the 35-floor Cytonn Towers in Kilimani.
Cytonn Senior Brand Manager, Daniel Mainye says that serviced apartments offer an attractive investment proposition for investors; with the rental yield being a lot higher than residential apartments, while also providing capital appreciation to clients.
“Cytonn’s strategy remains unique in the Kenyan market. On one hand, they raise capital for investment from their clients, both through the private markets and also through their regulated affiliate, Cytonn Asset Managers. They deploy this capital to well researched and planned real estate development projects, through their development affiliate, Cytonn Real Estate,” says Mainye.
The launch of the Cytonn Cysuites Apartments marks the company’s entry into the hospitality sector and it promises for more of the same.