Iconic Hilton Hotel building reopens as coworking space in Nairobi CBD

After remaining unoccupied for three consecutive years, the building, which housed the Hilton Hotel in the Nairobi Central Business District, has roared back to life this time as a coworking space.

The site that boasts one of the city's most landmark and iconic landmarks has finally gotten an occupant after several years of struggling to get a strategic investor.

Tulivu Coworking Space has taken over the site on Mama Ngina Street, repurposing it into a modern workspace targeting entrepreneurs, small businesses and corporate teams seeking flexible office arrangements.

The Eastleigh Voice toured the coworking space to sample what it offers to the residents of Nairobi and beyond.

"Opening of this coworking space opens a new chapter in the way Nairobi works. This outlet is a purpose-built environment that brings together functionality, design, and service to support the modern professional," said Tulivu co-working centre manager Blessed Muthoni.

A tour inside the spaces revealed ambience and tranquillity as rooms and lobby zones that once served guests privately have been carefully repurposed as offices, working desks and boardrooms.

"We have ensured that our clients get the comfort of a hospitality level. We have private meeting rooms and boardrooms for corporate meetings and any other kind of business-related gathering," said Muthoni.

Clients have the advantage of accessing outdoors that is leafy and lobbies that are well carpeted and maintained. There's a room for lactating mothers fully equipped with a fridge and other essentials to make infants and mothers comfortable.

The centre also boasts a recording studio that's fully equipped, where artistes and other art enthusiasts can record videos, conduct interviews and get ample time for editing.

"We have a state-of-the-art studio where clients who want to do production of content for online platforms can be received. The rates are affordable as prices here are tailored towards every client's own budget," said Muthoni.

A report by Knight Frank, Nairobi's coworking market is diverse, with over 60 spaces now operating, primarily concentrated in areas like Westlands, Upperhill, the CBD and Karen. The opening of Tulivu coworking space within the town centre could be a game-changer for urbanites looking for affordable working spaces.

Prime office occupancy has been on the rise, climbing to 77.7 per cent in June, a five-percentage-point increase from 72.7 per cent recorded in January.

The surge signals a stronger demand for high-quality workspace, driven largely by coworking operators and business process outsourcing (BPO) firms.

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The sector is becoming increasingly selective, with a clear focus on premium assets. Properties boasting strong environmental, social, and governance (ESG) credentials are considered best positioned for long-term success. Industry analysts conclude that quality, flexibility, and strategic positioning are now the defining factors for the resilient market.

Nairobi has, in the recent past, recorded a spike in shared and serviced offices amid changing work patterns and the rise of hybrid models.

In the first six months of the year, prominent expansions in the space included KOFISI Kaskazi’s 90,000-square-foot workspace in Westlands, Workstyle’s move into The Mandrake, and the International Workplace Group’s (IWG) continued rollout of its Regus and HQ brands.

Teleperformance also opened a new centre at Two Rivers International Finance and Innovation Centre, expected to create up to 5,000 jobs.

Despite growth in top-grade spaces, older and less adaptable buildings are struggling to attract tenants, with landlords under pressure to retrofit properties or lower rents.

Hilton Hotel permanently closed its doors on December 31, 2022, after 53 years of operation. However, other Hilton-branded hotels continue to operate in the city. The decision was attributed to several factors, including changing market conditions, financial constraints, and challenges in the hospitality industry.

The old Hilton Hotel building, co-owned by the Kenyan government and Hilton International Limited, was put up for sale in April 2024, with potential alternative uses such as retail shops, student accommodation, or a three-star hotel being considered. Finding a buyer has proven challenging.