The Bahraini group has entered into a memorandum of understanding with Silva Gigiri Ltd to develop a €25.9 million hotel and residential complex in the Gigiri diplomatic district
Gulf Hotels Group (GHG), Bahrain’s leading hotel group, has formalised the signing of a memorandum of understanding (MOU) with Silva Gigiri Ltd for the development of the Silva Gigiri Hotel & Residence in Nairobi, Kenya. The announcement was made on 17 August 2026 in Manama, the capital of the Kingdom of Bahrain.
The project is located on United Nations Crescent, in the Gigiri district, regarded as the Kenyan capital’s principal diplomatic quarter. It sits alongside the United Nations Office at Nairobi as well as numerous embassies and international organisations, positioning the property towards diplomats, expatriates, corporate executives and high-spending business travellers.
A second East African foothold after Zanzibar
For Gulf Hotels Group, this agreement marks the group’s second hotel management contract in East Africa, following the success of the Ocean Paradise Resort, its first property in Zanzibar. It represents a structuring step in the Bahraini group’s long-term international development strategy.
“The signing of this memorandum of understanding marks an important milestone in Gulf Hotels Group’s strategy to strengthen our presence in Africa. Kenya stands out as one of the region’s most promising hotel markets, underpinned by solid economic fundamentals, growing international connectivity and rising demand for quality hospitality assets”, said Ahmed Janahi, Group Chief Executive Officer of Gulf Hotels Group. He noted that the project will be delivered under a third-party operating model, in keeping with the group’s asset-light growth strategy.
For his part, Bishar Mohamed Muhamed, Chief Executive Officer of Silva Gigiri Ltd, stressed that the partnership represents a foundational step towards realising the developer’s long-term vision within one of Nairobi’s most prestigious diplomatic districts, with Gulf Hotels Group bringing recognised operational expertise and technical capabilities.
A €25.9 million mixed-use project at the heart of the diplomatic district
Valued at USD 30 million (approximately €25.9 million), the development will combine an upscale hotel with branded residences, complemented by a fine-dining concept and spa facilities entrusted to a recognised international operator. The project builds on Silva Gigiri Ltd’s existing presence in the district, where the developer operates the GLV Collection, a boutique-style luxury residence complex.
The mixed-use scheme will comprise approximately 250 units, spanning standard hotel rooms, studios, one- and two-bedroom residences, and upscale penthouses. The programme includes several dining venues, wellness and fitness facilities, co-working spaces, and a dedicated conference centre for diplomatic, corporate and MICE (meetings, incentives, conferences and exhibitions) events.
On the environmental front, the project falls within the framework of Kenya’s Vision 2030 for sustainable urban development, with a targeted LEED certification based on eco-efficient construction and design practices.
Nairobi, a stronghold of East African business hospitality
The choice of Nairobi confirms the growing appeal of the Kenyan capital for international hotel groups. In recent months, several operators have strengthened their presence in the country: Choice Hotels International entered the market with three properties, while Ascott signed the Citadines Westview Nairobi as part of its regional expansion. More broadly, Hilton has also extended its presence in Sub-Saharan Africa through its Tapestry lifestyle collection, confirming the region’s rising profile among major international groups.
For Gulf Hotels Group, this deal is a central component of its 2026-2030 growth strategy, which prioritises expanding its third-party hotel management platform into high-potential markets across Africa and the Indian Ocean, driven by rising foreign direct investment and growing institutional demand for experienced hotel operators.
Timeline and next steps
Following the formalisation of the memorandum of understanding, the two organisations are now entering the next phase of the project, which involves securing an affiliation with a recognised international hotel brand and finalising definitive management and franchise agreements.
Construction of the Silva Gigiri Hotel & Residence is expected to begin in late August 2026, with a phased opening targeted for 2028.
At a glance by The Hospitality Tribune
Deal: MOU signed August 17, 2026 between Gulf Hotels Group and Silva Gigiri Ltd
Project: Silva Gigiri Hotel & Residence, Gigiri diplomatic district, Nairobi, Kenya
Investment: USD 30M (approx. €25.9M)
Scale: Approximately 250 units – hotel rooms, studios, one- and two-bedroom residences, penthouses
Timeline: Construction starts late August 2026, soft opening targeted for 2028
Strategic fit: GHG’s second East Africa contract after Zanzibar, part of its 2026-2030 asset-light growth strategy
