CityBlue Hotels, part of The Diar Group, is accelerating its East African expansion with a new mixed-use beachfront development in Watamu, underscoring rising investor appetite for branded hospitality residences along the region’s coastline.
The fast-growing African hotel chain has signed a deal with Sands of Darakasi Resort Ltd to develop and operate Oceara Residences by CityBlue, a large-scale project set on a six-acre site with more than 130 metres of direct Indian Ocean frontage.
The development will feature over 200 residential units, including studios, one-bedroom and two-bedroom apartments, designed to merge resort-style living with long-term property investment. The project is currently in development, with completion targeted for the fourth quarter of 2029.
Beyond accommodation, Oceara Residences is being positioned as a lifestyle destination, incorporating multiple swimming pools, a beach club, restaurants, a spa, fitness facilities and landscaped green spaces. The integrated offering reflects a broader shift in African hospitality towards mixed-use developments that combine tourism, real estate and recurring revenue streams.
The project will operate under the Residences by CityBlue platform, giving it access to international hospitality standards and global distribution channels—an increasingly important factor for attracting foreign buyers and high-end leisure travellers.
Speaking at the Future Hospitality Summit Africa in Nairobi, CityBlue Hotels CEO Jameel Verjee said the development marks a strategic milestone for both the company and Kenya’s coastal tourism market.
“Oceara Residences by CityBlue represents a significant step in the evolution of Kenya’s coastal hospitality sector. We are bringing together world-class hospitality expertise and a unique beachfront proposition that will appeal to both investors and leisure travellers,” Verjee noted.
The project comes amid growing demand for branded residences across East Africa, particularly in leisure destinations such as Watamu, which has seen increasing interest from regional investors and international buyers seeking yield-generating holiday homes.
Industry experts note that developments like Oceara signal a maturing hospitality market in the region, where developers are moving beyond traditional hotel models to create hybrid assets that deliver both lifestyle value and investment returns.
Founded in 2013, CityBlue Hotels has rapidly expanded across sub-Saharan Africa, positioning itself as a partner of choice for developers seeking operational expertise and scalable hospitality solutions.
With Oceara Residences, the company is betting on Kenya’s coast as the next frontier for high-end, investment-driven tourism infrastructure—potentially setting a benchmark for similar projects across East Africa.