CityBlue Hotels Plans Oceara Residences Development in Watamu, Kenya

Beachfront project to combine residential and hospitality offerings

CityBlue Hotels, part of The Diar Group, has announced an agreement with Sands of Darakasi Resort Ltd to develop and operate Oceara Residences by CityBlue in Watamu, Kenya.

The project will be located on an approximately 6-acre beachfront site, offering direct ocean access. It is planned as a mixed-use development combining hospitality services with residential units.

Residential mix and lifestyle amenities

Oceara Residences by CityBlue is expected to include more than 200 units, comprising studios and one- and two-bedroom apartments. The development is designed to cater to both investors and individuals seeking residential options along the Kenyan coast.

Planned amenities include multiple swimming pools, a beach club, restaurants, spa facilities, fitness areas and landscaped outdoor spaces. These features are intended to support both leisure stays and longer-term residential use.

Development timeline and brand integration

The CityBlue Hotels project is currently underway, with completion anticipated for the fourth quarter of 2029. It will operate under the “Residences by CityBlue” platform, aligning the development with the group’s hospitality-led residential model and offering access to its distribution network.

Growing interest in coastal developments

According to Jameel Verjee, the project reflects ongoing activity in Kenya’s coastal hospitality and residential markets, particularly in destinations such as Watamu.

Developments of this type indicate increasing interest in integrated residential and hospitality projects across East Africa, with demand driven by both domestic and international buyers seeking combined lifestyle and investment opportunities.