Cytonn Investments Management PLC, this afternoon launched CySuites Apartment Hotel, the latest offering under its Private Equity arm in an elegant luncheon graced by KNCCI President, Mr. Richard Ngatia.
Speaking at the launch, Cytonn Chief Executive Officer Edwin H. Dande gave a brief introduction of CySuites, stating that “Serviced Apartment Hotels offer attractive yields compared to residential apartments, CySuites is our platform to earn attractive returns for our clients.” Edwin then explained why Cytonn decided to venture into Serviced Apartment Hotels. “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%, according to our latest research data. Serviced apartments command very strong rental yields of about 12%, compared residential yields which stand at 4.9%. If you add another 8% of capital appreciation, we are targeting a total return of 20% per annum. We saw this as an opportunity and decided to capitalize on it,” he said.
Richard Ngatia, the guest of honor at the launch said, “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 Apartment Hotel 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.”
“Keep up the good work,” he added.
Shiv A. Arora, Head of Private Equity and Real Estate at Cytonn, recognized all the parties and partners at the launch stating how valuable their contributions to CySuites was. Shiv stated that “Serviced apartments as a concept has 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.”
CySuites Apartment Hotel is located on Church Road off Rhapta Road in Westlands. It contains one- and two- bedroom apartments and penthouses. It will be Cytonn Hospitality’s flagship product, targeting both business and leisure travelers.
Prof. Daniel Mugendi, Chairman of Cytonn Investments, thanked the clients for their continued support, and wished CySuites team the best, saying that “For us, this has been a long journey and we are very pleased that we have attained this significant milestone.”
Cytonn’s strategy remains unique in the Kenyan market. On one hand, we raise capital for investment from our client, both through the private markets and also through our regulated affiliate, Cytonn Asset Managers. We deploy this capital to well researched and planned real estate development projects, through our development affiliate, Cytonn Real Estate. Serviced apartments offer an attractive investment proposition for investors; the rental yield is a lot higher than residential apartments, while also providing capital appreciation to our clients.
