The Bed Only Accommodation (BOA) business is one of the booming businesses in Kenya and entrepreneurs are heavily investing in the sector owing to the surging demand for short-term rentals.
While the business has been popularly christened Airbed and Breakfast (AirBnB) it’s important to note that many facilities in Kenya do not offer Bed and Breakfast (BnB) services but offer Bed Only Accommodation (BOA).
This business allows individuals to rent out their homes or apartments to travelers on a short-term basis, providing an alternative to traditional hotel accommodations.
Unlike the traditional hotel accommodation, BOA business has high nightly returns and any investor looking to earn a passive income in the sector can list their extra idle unit.
The business is however profitable in select areas, especially revellers’ hotspots. In these areas, BOA owners rake in between Sh2,000-5,000 per night depending on the size, amenities provided, and location of the unit.
However, in the upmarket areas of Karen, Lavington, and Runda, these facilities fetch up to Sh30,000 per night.
”Some landlords prefer upmarket areas because they offer better returns and are much easier to manage. A 3-bedroom cottage in Karen will fetch from Sh15,000 to Sh35,000 a night. The long-term monthly rent would be around Ksh100,000,” Alfred Simmantoi, a property agent in Karen, notes.
The Dark Sides Of Airbnb Business That Nobody Talks About
The homestay business service is pretty straightforward to start. All you need is a room or house with the basic amenities needed to accommodate your guests comfortably and look for a good location.
Some of the areas anyone looking to invest in the BOA business should consider are.
Nairobi
Of the total number of BOA facilities in Kenya, the highest number is in Nairobi. This is owed to the fact that Nairobi is one of the tourism-heavy areas.
In addition, many revellers in Nairobi want to hold parties in these facilities as many hotel rooms do not allow parties.
Among the booming areas for BOA business in Nairobi are Kasarani, Roysambu, Kilimani Lavington, South B, South C, Utawala, and Ruaka, among others.
Some of the above areas are located close to CBD, near airports, and tourist destination areas while others are hotspots for the most frequented entertainment joints where demand for accommodation is high.
Amanda Kimani: Meet 25-year-old CEO running 37 Airbnb units in Nairobi
Naivasha
Naivasha is the second most visited town by tourists after Mombasa. The town is located just one hour from Nairobi and is home to many tourist attractions sites including National parks, lakes, and scenic escarpments, among others.
BOA business is doing quite well in Naivasha due to the flow of travelers in the town. The good thing about Nakuru is that the BOA is not as saturated as in Nairobi.
Mombasa
Mombasa is one of the most profitable areas for BOA business as unit owners charge higher prices compared to Nairobi.
The hotel charges are equally higher and many travelers end up looking for BOA as they are cheaper than hotels.
The higher charges are due to the high number of both local and international travelers in the region, meaning high returns for investors.
The town is famed for being a beach holiday destination, attracting tourists from all over the world. Some of the towns where such investment can thrive include; Nyali, Diani, Mtwapa, Vipingo, and Kilifi.
Nanyuki
Nanyuki, located in the heart of Laikipia County, provides breathtaking views of Mount Kenya and offers a diverse range of attractions, making it a popular tourist destination.
The BOA business in this area known as home to some of the most exquisite hotels, is booming as it is less exploited compared to areas like Nairobi.
Kajiado
Areas of Kitengela and Rongai host some amazing hidden retreats where revellers flock especially during weekends and holidays. The accommodation business is doing quite well and those with renting units are raking some good cash.
