The first budget hotel group of global standing will open in Kenya next year, as all other global investments in the hospitality sector until now concentrated on the 5-star and 4-star market. All the major hotel chains are either already on site or in the process of establishing hotels in Nairobi, mostly on management contracts. The entire Eastern African region has over the past few years seen an increased interest from the hotel giants, following the discovery of oil and gas in Uganda, Kenya, and Tanzania.

Tune Hotels, which has a large base in the Far East, will open a 280-room hotel in the Westlands area of Nairobi, which has in recent years started to rival the Central Business District with many companies having moved offices there. The hotel will reportedly NOT have a swimming pool, meeting facilities, a gym, or a spa and will concentrate purely on the room and food business at prices said to be in the US$100 bracket.

Once the hotel in Nairobi is open, the group plans to expand the brand in the Eastern African region with Dar es Salaam reportedly next on the list, before also seeking expansion into Uganda, Rwanda, and Burundi.