The US' Valor Hospitality has announced the signing of agreements for two developments in East Africa: the TUI Blue Watamu Hotel in Kenya and a Canopy by Hilton hotel in Zanzibar.

Situated in the coastal town of Watamu, north of Mombasa, the TUI Blue Watamu Hotel is being developed by Sands of Darakasi Resorts Limited and is scheduled to break ground in September. It will feature 124 rooms along with a beach club, restaurant and other amenities. Valor Hospitality will oversee the development, management and operations of the hotel in partnership with TUI Blue, part of the German TUI Group.

“International hotel brand franchises have shown superior results in competitive markets as the top business model in the USA and Europe. This strategy is proving to yield stronger commercial outcomes in Africa, making it a promising investment frontier,” said Michael Pownall, managing partner for Africa and the Middle East at Valor Hospitality.

In April, TUI Group announced it was working on the development of eight new hotels in Sub-Saharan Africa, including the Watamu development, and that it was looking for more opportunities in the region. Its project pipeline includes properties in Cape Verde, The Gambia, Senegal and Tanzania.

Meanwhile, the 28-storey, 162-room Canopy by Hilton Zanzibar – The Burj will break ground at the end of 2024 and is being developed by CPS Africa. Located in Fumba on Zanzibar’s west coast, the hotel claims to feature the world’s tallest hybrid timber tower at 95 metres high. It is scheduled to open in 2027.

The Burj hotel is part of Fumba town's smart city masterplan, which includes the development of branded residences, offices, retail units and restaurants.

Valor Hospitality's services include site selection, brand selection, financing solutions, project management and operations management.