Arab Finance: Real estate companies in Egypt shifted focus towards investing in hotel projects to increase their dollar revenue and diversify their portfolios, according to five real estate company heads who spoke with Asharq Business.
The real estate developers seek to hedge against any future changes in the exchange rates while obtaining returns from administrative, commercial, and entertainment projects.
This strategy comes within the framework of the Egyptian government’s efforts to increase the number of hotel rooms from 230,000 now to about 500,000 units by 2028.
Ahmed Sabbour, Chairman of Al Ahly Sabbour, told Asharq that his company has five hotels with a total capacity of 580 rooms distributed across its projects in Ain Sokhna, the North Coast, and West Cairo.
As for the CEO of Maadar Development Ahamed Ehab, he said that the company is about to add 600 hotel rooms to its portfolio.
These rooms are distributed over three hotels in Ain Sokhna, where Maadar is setting up its Azha project, Ehab added.
Meanwhile, Misr Italia Properties also intends to expand in the hotel sector, as it has established an arm to operate within this sector and commenced the establishment procedures for two hotels with a total capacity of 200 rooms in its Solare project on the North Coast, as per Mohamed Elassal, the company’s CEO and Managing Director.
Elassal revealed that the two hotels will be developed with combined investments of $80 million.
Moreover, Abdullah Salam, CEO of Madinat Masr, unveiled that the company has teamed up with a consultant to study hotel projects, set for implementation over the coming period.
Through these projects, Madinet Masr seeks to secure revenues in foreign currency and enhance its recurring revenues, Salam said.
*dditionally, Ibrahim El Missiri, CEO Of Abu Soma Development Company, said that his company started carrying out a plan in the hotel sector, which targets managing up to 3,100 hotel rooms within six years.
Hence, the company has allocated about $190 million in investment, $150 million of which for building new hotels, El Missiri highlighted.
It is worth noting that Yasseen Mansour, Chairman of Palm Hills Developments, told Asharq in September 2024 that investing in the hotel sector is among the company's priorities, which focus on diversifying the investment portfolio and achieving integration in its projects.
Mansour mentioned back then that the company owns 1,000 hotel rooms across its projects and seeks to increase their number over the coming period.