TPS Eastern Africa to Invest in Multi-Purpose Conference Facility in NairobiTPS Eastern Africa to Invest in Multi-Purpose Conference Facility in Nairobi TPS Eastern Africa, the renowned hospitality brand known for Serena hotels, has ambitious plans to invest up to $30 million in a multipurpose conference facility adjacent to its Nairobi hotel. This state-of-the-art facility will cater to the growing demand for meetings, conferences, and exhibitions in the region. The project, set to commence early next year, will be constructed on a prime 1.12-acre plot directly opposite the hotel’s entrance. Feasibility studies are expected to conclude by December 2024. The investment will be financed through a combination of bank loans and support from partners. The multi-purpose facility will feature a spacious conference room capable of accommodating 500 to 1,000 people. It will also include banqueting space, meeting rooms, and an underground parking area. Additionally, the building will provide lease space for businesses to establish their operations. “The green triangle plot beside Nairobi Serena Hotel presents an excellent opportunity for us to expand our real estate portfolio,” said Ashish Sharma, TPS Eastern Africa’s Chief Executive. “The investment is estimated to range from $20 million to $30 million.” This new conference facility aligns with TPS Eastern Africa’s expansion strategy, which has traditionally focused on hotels and lodges in Kenya, Uganda, and Tanzania. The positive financial performance of the company, with a net profit of Sh870.87 million in 2023, has fueled this renewed investment appetite. The hospitality industry globally has witnessed a resurgence post-COVID-19, with the resumption of international travel and increased confidence in leisure and corporate segments. TPS Eastern Africa’s portfolio of 22 hotels, resorts, and lodges has regained its footing, contributing to this improved performance. The investment in this multi-purpose conference facility demonstrates TPS Eastern Africa’s commitment to providing exceptional meeting and event spaces in the East African region. It is expected to further strengthen the company’s position as a leading hospitality provider and attract a wider range of corporate and leisure travelers.
TPS Eastern Africa, the owner of Serena hospitality brand, plans to build a multi-purpose conference facility next to its Nairobi hotel at an estimated cost of up to $30 million (Sh3.8 billion) targeting meetings, conferences and exhibitions.
The company’s chief executive Ashish Sharma said the works on the project which will take two years to complete will start early next year once feasibility studies end in December 2024.
The conference facility that will sit on a 1.12-acre piece of land directly situated opposite the hotels’ main entrance will be constructed using loans from banks and support from its partners.
The space is currently used by the hotel as its main car parking area.
“We have a piece of land next to Nairobi Serena hotel that we call the green triangle that currently operates as our parking space. This is the land where we plan to build the multi-purpose real estate building,” Mr Sharma said in an interview. “The investment into the facility will be in the range of $20 million to $30 million.”
The conference room inside the development is expected to accommodate between 500 to 1,000 people in a single sitting.
The building will have banqueting space, meeting rooms and an underground car park. It will also offer an opportunity to firms to lease space and operate their businesses.
“The plot opposite Serena Hotel is a bigger project on 1.12 acres and it will require proper feasibility studies which will be completed in December 2024 and then presented to the board for approval and that development could take 24 months,” Mr Sharma said.
The setup of the conference facility marks an expansion by the Nairobi Securities Exchange-listed firm which currently draws most of its revenue from hotels and lodges and in Kenya, Uganda and Tanzania.
The renewed investment appetite comes at a time when the company has recovered from the slump brought by the outbreak of the Covid-19 pandemic in early 2020.
The company posted a net profit of Sh870.87 million in the year ended December 2023, marking 2.3 times jump from the previous year on increased business.
The latest profit is a growth from Sh379.69 million posted in the previous year and translates to record earnings, overtaking the previous peak net income of Sh615.8 million in 2011.
Revenue in the review period rose to Sh9.6 billion from Sh6.9 billion a year earlier.
TPS said its portfolio of 22 hotels, resorts, safari lodges, and camps within the Eastern Africa regions, regained its footing, supported by a return of confidence in the foreign leisure and corporate market segments.
Globally, the hotel business has seen an improved performance post Covid-19 on resumption of international travel. The pandemic had seen most governments impose restrictions on domestic as well as international travel in efforts to contain the spread of the respiratory disease.
