Hemingways Collection is to invest KES800 million (€7 million) to upgrade Hemingways Watamu Resort in Watamu, Kenya.

Hemingways Holdings Chairman, Richard Evans, says the upgrade is due to the need for quality resorts in Watamu.

The resort, which has 76 rooms, will be downsized to 39 rooms with 15 luxury apartments.

“There is a growing luxury market in the country and a growing business travel sector, and we are planning to tap in to this niche market,” Evans said.

The project is expected to take 18 months with the hotel reopening in November 2017.

“The coast has been neglected for a while following the downward trend owing to security concerns since the Al Shabaab attacks; Kenya has been losing to Zanzibar, hence there is need for high-end hotels at the coast,” Evans added.