IFC, Proparco, and MIGA Supports Kasada Through A $49.5 Mn Crowne Plaza Renovation Fund

The International Finance Corporation (IFC), in collaboration with Proparco and MIGA, have announced a $49.5 Mn investment to Kasada Hospitality Fund, with an aim to support the renovation of Crowne Plaza Hotel, Nairobi, to green and sustainable building standards. This comes three years after the financing partnership was made in July 2021. Both IFC and Proparco have each contributed $11 Mn, whereas MIGA has contributed $27.5 Mn as part of the guaranteed master contract issued in 2021. This will see the property whose renovation commenced in January 2023, reopen in January 2024, to also include a state-of-the-art coworking space under European WOJO brand, in order to cater for a growing demand for more flexible workspaces. Additionally, Crowne Plaza will become the second IFC edge certified hotel in Kenya, after Executive Residency in Riverside, Westlands constituency.

Crowne Plaza is a six-floor upmarket hotel located along Kenya Road, in Nairobi’s Upper Hill District. Launched in 2010, it is one of the largest meeting and events places in Kenya, with 206 rooms, a ballroom that can accommodate 300 people, and over 10 meeting rooms with a total capacity of 550 people. 

Notably, its rebranding into a coworking space comes at a time when flexible office spaces have been gaining popularity in the country, evidenced by a 7.6% annual growth rate for the past five years. Currently, there are approximately 75 coworking spaces in Nairobi that Estate Intel tracks. Westlands accounts for the largest market share at 42.7%, whereas  Upper Hill ranks position seven, with a mere 2.7% market share, indicating an undersupply and minimal competition. Given Upper Hill’s popularity as one of the most affluent commercial hubs in Nairobi, we anticipate that this will boost the attractiveness and performance of the facility. Moreover, the rebranding is a good decision as it comes at a time when the hospitality sector performance was negatively impacted by the effects of the pandemic, and as such a development mix is commendable.

Estate Intel loves your feedback! Let the Estate Intel Insights team know what you think about IFC, Proparco and MIGA’s decision by sending an email to [email protected].

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