Serena Hotels to undergo major upgrades in East Africa

Dar es Salaam. TPS Eastern Africa Plc, the operator of the iconic Serena Hotels brand, is set to invest hundreds of millions of shillings in upgrading its flagship properties across East Africa, including Tanzania, as the region’s hospitality sector continues its post-pandemic recovery.

According to the company’s latest annual report, eight of its prime hotels — including Dar es Salaam Serena, Arusha Serena, Zanzibar Serena, and properties in Nairobi, Kampala, Kigali, Lake Kivu, and Mombasa — will undergo phased refurbishments starting in 2025. All hotels will remain operational during the renovation period.

“As long-term investors with a strong commitment to East Africa as a destination, we are embarking on a phased refurbishment of our city hotels to elevate the guest experience and meet growing demand,” the company noted.

The planned upgrades will include the addition of modern amenities such as swimming pools, expanded meeting facilities, and live cooking stations, with improvements tailored to enhance comfort and functionality while preserving each hotel’s distinct cultural and architectural identity.

The decision comes at a time when tourism, business travel, and the meetings and conferences segment — heavily disrupted by the Covid-19 pandemic — are showing strong signs of recovery. Serena says guest feedback and market trends have informed the group’s strategy to improve guest satisfaction and competitiveness.

The hospitality firm, which is listed on the Nairobi Securities Exchange, has invested a total of $58 million (Sh7.5 billion) in refurbishments and property expansion over the past 12 years. It maintains an annual capital expenditure of around four percent of revenue in its core markets — Kenya, Tanzania, Zanzibar, and Uganda.

In a further sign of confidence in the sector’s rebound, TPS reinstated shareholder dividends after posting a substantial jump in profits. The company declared a dividend of Sh0.35 per share — a total of Sh98.9 million — following a 2.8-fold increase in net profit to Sh1.3 billion for the year ending December 2024. Revenue for the year rose by 5.2 percent to Sh10.1 billion, driven by positive performance across all subsidiaries.

The hospitality industry in Kenya, Tanzania, and the wider region is seeing increased competition, with several international hotel brands entering the market. Kenya alone added 2.5 million bed-nights last year, raising the national capacity to 35.5 million beds.

With Serena’s investment in its regional portfolio, the company is positioning itself to remain a leading player in the East African tourism and business travel market.