(Posted 02nd April 2026)
CityBlue Hotels, a member of The Diar Group, Africa’s local hotel chain, is pleased to announce a deal with Sands of Darakasi Resort Ltd for the development and operation of Oceara Residences by CityBlue, a landmark beachfront hospitality project in Watamu, Kenya.
Set on an approximately 6-acre prime beachfront site with over 130 metres of direct ocean frontage, Oceara Residences by CityBlue is envisioned as a premier coastal destination combining resort living with branded residential offerings. The development will comprise of 200+ units, including studios, one-bedroom, and two-bedroom apartments, supported by an extensive range of lifestyle and leisure amenities.
These will include multiple swimming pools, a beach club, restaurants, a spa, fitness facilities, and landscaped green spaces, positioning Oceara Residences by CityBlue as one of the most compelling mixed-use resort developments on the Kenyan coast. The project is currently in the development phase, with completion targeted for Q4 2029.
The development will be fully integrated into the Residences by CityBlue platform, ensuring alignment with international hospitality standards, strong brand positioning, and access to regional and global distribution networks.
Speaking on the sidelines of the Future Hospitality Summit in Nairobi, Jameel Verjee, CEO of CityBlue Hotels, commented:
“Oceara Residences by CityBlue represents a significant milestone in the evolution of Kenya’s coastal hospitality market. We are proud to partner with Sands of Darakasi Resort Ltd to bring this vision to life, combining world-class hospitality expertise with a unique beachfront offering that will attract both investors and leisure travellers. Our focus is to deliver a high-performing, design-led destination that creates long-term value for all stakeholders.”
The project reflects growing investor interest in branded residential and mixed-use hospitality developments in East Africa, particularly in high-growth leisure destinations such as Watamu. With its strong positioning and comprehensive amenity offering, Oceara Residences by CityBlue is expected to appeal to both regional and international buyers seeking a blend of lifestyle, investment, and hospitality-driven returns.
In addition has CityBlue Hotels announced the launch of Diani Beach Residences by CityBlue.
Set on approximately five acres, the project is envisioned as a flagship lifestyle destination comprising between 400 and 500 contemporary residential units
The Diar Group in partnership with Staroot Real Estate, is pleased to announce a proposed collaboration to develop and operate Diani Residences by CityBlue, a landmark mixed-use residential and hospitality development in Diani Beach. The announcement will be unveiled at the Future Hospitality Summit Africa taking place in Nairobi on 01st of April 2026.
Set on approximately five acres, the project is envisioned as a flagship lifestyle destination comprising between 400 and 500 contemporary residential units. The development will feature a thoughtfully curated mix of one-bedroom and two-bedroom apartments, designed to meet the evolving needs of both investors and end-users seeking high-quality coastal living experiences.
The project will be branded under the Residences by CityBlue platform, leveraging the extensive experience of CityBlue in managing hospitality-led residential developments across Africa. Known for its operational excellence and performance-driven approach, Diani Residences by CityBlue is expected to be the benchmark for integrated living within Kenya’s coastal real estate market.
The development will include multiple swimming pools, a fully equipped fitness centre, spa facilities, conferences and meeting spaces, children’s recreational areas, paddle courts, and curated food and beverage experiences.
A signature restaurant concept will anchor the culinary offering, supported by flexible dining spaces designed to accommodate both casual and private dining experiences.
Speaking on the proposed partnership, Jameel Verjee, Founder & CEO of CityBlue Hotels noted: “Diani continues to emerge as one of East Africa’s most attractive coastal destinations. This project represents an exciting opportunity to create a vibrant, hospitality-led residential community that delivers long-term value for investors while enhancing the destination’s global appeal.”
