CityBlue Hotels announces Oceara Residences project in Watamu to expand Kenya portfolio

CityBlue Hotels announced in March 2026 the development of Oceara Residences by CityBlue in Watamu, Kenya, marking its expansion into coastal residential hospitality as the company seeks to strengthen its presence in East Africa’s tourism market.

The project will be located in Watamu, a coastal town north of Mombasa known for its beaches and marine parks. The company said the development will target both short-term visitors and long-stay residents seeking serviced accommodation along Kenya’s Indian Ocean coastline.

Project announcement in Watamu

CityBlue Hotels confirmed that Oceara Residences will be developed as a residential-style hospitality offering, combining hotel services with apartment-style accommodation. The company said the announcement forms part of its strategy to diversify its portfolio beyond traditional hotel formats.

The development was formally introduced in March 2026, with planning and initial project structuring currently underway. The company stated that further details on timelines and construction phases will be disclosed as the project progresses.

Officials said the Watamu location was selected due to its growing popularity among both domestic and international tourists.

Property concept and facilities

The Oceara Residences project will include fully serviced residential units designed for flexible stays. CityBlue Hotels said the property will integrate hospitality services such as housekeeping, food and beverage offerings, and guest support systems.

The development is expected to include shared amenities and leisure facilities aligned with guest requirements in coastal destinations. The company indicated that the design will reflect the surrounding environment and local architectural influences.

Specific details regarding the number of units and total investment value were not disclosed at the time of announcement.

Expansion strategy in East Africa

CityBlue Hotels said the project aligns with its broader expansion strategy across East Africa, where it operates hotels in multiple countries. The company has been increasing its footprint through both new developments and partnerships with local investors.

Executives stated that residential hospitality is an area of growing demand, particularly in leisure destinations where travelers seek extended stays. The Oceara Residences project is intended to capture this segment.

The company added that it continues to evaluate additional opportunities in Kenya and neighboring markets.

Location significance

Watamu is a key tourism destination in Kenya, known for its marine national park, coral reefs and beach resorts. The area attracts visitors for both leisure travel and marine-based activities.

Industry participants said demand for structured accommodation in coastal regions has been increasing, driven by international tourism and domestic travel. Developers have been introducing new hospitality formats to meet evolving preferences.

CityBlue Hotels indicated that the project will contribute to expanding accommodation options in the region.

Current status

The Oceara Residences by CityBlue project has been announced as of March 2026, with planning activities in progress. CityBlue Hotels said further updates on construction timelines, partnerships and opening dates will be provided as development advances.