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LAND FOR SALE IN NAIROBI CBD SOUTH EAST COMMERCIAL PARK, NAIROBI.
a4architect.com
#1 Posted : Wednesday, May 12, 2010 8:42:28 AM
Rank: Veteran


Joined: 1/4/2010
Posts: 1,668
Location: nairobi
South East Commercial Park is located within Nairobi CBD and has over 140 plots available for sale to developers. These are the only plots for sale available in Nairobi CBD so it gives a great opportunity for a chance to own land and develop commercial property in Nairobi CBD.
See more details and pictures here
http://www.a4architect.c...commercial-park-nairobi/
As Iron Sharpens Iron, So one Man Sharpens Another.
Injere
#2 Posted : Wednesday, May 12, 2010 10:00:45 AM
Rank: Member


Joined: 4/7/2010
Posts: 130
How much does a plot within this development cost?
Eddy
#3 Posted : Wednesday, May 12, 2010 2:22:09 PM
Rank: Member


Joined: 7/20/2006
Posts: 277
ROI in one year???? no hotel will have an occupancy of 90% wonder where you got your statistics from, standard occupancy for Nairobi hotels (up to 3 star) should be around 65%. If your ROI is based on dividing the net income of an investment by the total value of all resources that have been employed to make and sell the product. Net per room for me would mean i deduct costs the likes of taxes, breakfast, laundry, staff, water, power,licenses,insurance,computer softwares, marketing etc etc. Another thing a 400 bed hotel is far too large, most hotels in Nairobi are below 200 beds - so getting occupancy of 90% for a 400bed hotel would be a nightmare.

By classifying it as middle class hotel i imagine it would be a 3 star - This segment has a major competition.
You are likely to find that the net out of the 2500 is around 350.
Please give a realistic picture, the hotel business is not for the faint hearted my brother.
a4architect.com
#4 Posted : Wednesday, May 12, 2010 9:01:52 PM
Rank: Veteran


Joined: 1/4/2010
Posts: 1,668
Location: nairobi
@ Injere..the land will be sold through auction method..currently an acre of land in Nairobi CBD costs around 120 million shillings and an eighth costs 20 million.

@ Eddy...do you know that most hotels in Nairobi CBD have over 90% occupancy rate? Try a practical approach by trying to get a hotel room in Nairobi around 10-11 pm then you will see for yourself how hard it is coz most rooms are full.The statistics are usually doctored so that the hotels avoid paying levys charged by the government. For a net of 2500 to be reduced to kes 350 is unrealistic..the costs cant be this high considering labour in Kenya is not so expensive.
Check out this site for Intercontinental hotel http://www.ichotelsgroup...en/gb/locations/nairobi
The hotel has 752 rooms with a 95% occupancy rate. Room charges are over kes 10,000. If we do the arithmetrics then you will realise how fast such a project repays itself.
Personally i have done several hotels so i have a good idea of this. Notice that i have not included profit proceeds from conference facilities, food and beverages which is quite substantial. Also, the cost of construction will be much lower since hotel constructions are exempt from import tax.
As Iron Sharpens Iron, So one Man Sharpens Another.
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