Cytonn Investments Management PLC, on Saturday 23rd November 2019, officially opened CySuites Apartment Hotel, the latest offering under its Private Equity arm.
Cysuites is a serviced apartment complex with 32 two-bedroom apartments, 6 one-bedroom apartments, and two penthouses that offer contemporary living and working spaces.
“Our foray into Serviced Apartment Hotels is backed by thorough market research. Demand for serviced apartments continues to grow, evidenced by occupancy rates of up to 88 percent, according to our latest research data. Serviced apartments command very strong rental yields of about 12 percent, compared residential yields which stand at 4.9 percent.
If you add another 8 percent of capital appreciation, we are targeting a total return of 20 percent per annum,” said Cytonn Chief Executive Officer Edwin H. Dande during the opening ceremony. “Serviced Apartment Hotels offer attractive yields compared to residential apartments and with CySuites our aim is to earn attractive returns for our clients,” he added.
Cysuites is located on Church Road, off Rhapta Road and targets business and leisure travelers.
“The hospitality sector has continued to be a key driver of the Kenyan economy evidenced by the continued contribution by accommodation and food services. This has been driven by strong demand for hospitality services and facilities. CySuites is a great development that offers spacious and luxurious living areas and it will be a great place for tourists to come and enjoy their stay while in the county. More importantly, it creates employment opportunities for our youth, both directly and indirectly,” said Kenya National Chamber of Commerce and Industry Richard Ngatia.
Serviced apartments as a concept have gained popularity in the recent years also outside the business travel space, as more leisure travelers are finding that serviced apartments are easily available and offer a credible and cost-effective alternative compared to other types of accommodation.