Adani Targets $1.85 Billion Luxury Hotels and Other Development on 30 Acres Near JKIA in Airport Control Bid
Adani Airport Holdings is eyeing 30 acres near Jomo Kenyatta International Airport (JKIA) for a luxury commercial development, planning a five-star resort and other high-end businesses as part of its bid to operate Kenya’s largest airport.
The Adani has allocated 30 acres for city-side development (CSD) near JKIA, with 28 acres focused on hospitality and two acres on retail, food, and beverage, as revealed by a feasibility report supporting the takeover bid, seen by Business Daily.
The company, part of billionaire Gautam Adani’s Indian conglomerate, plans to build three hotels near JKIA: a 250-room four-star hotel, a 200-room five-star hotel, and a 150-room three-star hotel. The plans also include a retail and food zone, according to the feasibility study.
The report highlights Adani Airports’ vision to create innovative, futuristic spaces, including hospitality districts, world-class retail, and mixed-use developments. The aim is to offer diverse food and beverage options, catering to various cuisines and occasions.
Earlier this year, Adani submitted a privately-initiated proposal to take over JKIA operations under a 30-year concession agreement.
The company is targeting an 18% annual return on its $1.85 billion (Sh 246 billion) investment, which includes $750 million for a new terminal building, apron, taxiway system, and two rapid exit taxiways.
However, Adani’s deal for JKIA has faced significant opposition, including legal challenges from airport workers who claim it is unconstitutional.
Beyond airport operations, Adani’s plans for commercial development around JKIA are ambitious, leveraging the airport’s proximity to Nairobi National Park.
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Given Kenya’s tourism reliance on wildlife and nature, Adani intends to position its hospitality and leisure segments as resorts. The expansion of JKIA’s infrastructure is seen as a boost to Kenya’s tourism appeal and other sectors like hospitality, transportation, and retail.
In addition to the three hotels, retail, and food spaces, Adani’s broader city-side development vision includes convention centers, office spaces, smart warehouses, healthcare facilities, and film production sites.
Adani’s proposal is heavily weighted in favor of the airport operator, allowing the company to retain all revenue from commercial development. By contrast, revenues from airport operations will be shared with the Kenya Airports Authority through fixed concession fees and a variable payout tied to airport earnings.
Adani has the freedom to engage in commercial development contracts with any party, and the termination of the airport concession will not affect city-side development rights or related contracts. The firm also retains the right to sublease assets as part of its development.
The proposal stipulates that the Kenyan government and the Kenya Airports Authority (KAA) will handle all land acquisition costs for city-side development, as well as any litigation arising from land acquisition, at no expense to Adani.
Adani Targets $1.85 Billion Luxury Hotels and Other Development on 30 Acres Near JKIA in Airport Control Bid
