Prime Hospitality Group: Delivering Exceptional Returns and Guest Satisfaction
Updated 3/25/2025 8:00:00 AM
Arab Finance: In Egypt's rapidly evolving real estate landscape, particularly within the burgeoning hospitality sector, the demand for diverse accommodation options is on the rise. With ambitious targets for increasing hotel room capacity, the role of serviced apartments and holiday homes is becoming increasingly significant.
Today, we delve into this dynamic market with Moataz Amin, Founder and CEO of Prime Hospitality Management Group, a pioneering force in the management of serviced apartments and holiday homes across Egypt, and now expanding into other regions.
Amin shares valuable insights into the company's innovative business model, strategic partnerships, and their perspective on the future of Egypt's hospitality market, especially regarding the growing importance of serviced accommodations.
1-Prime Hospitality is recognized as a pioneer in managing serviced apartments and holiday homes in Egypt. What inspired the creation of this business model, and how has it evolved over the years?
The inspiration for Prime Hospitality stemmed from a clear market inefficiency I identified in 2018. My research revealed a significant gap between property owners/investors and tenants, with the traditional rental market heavily reliant on brokers, leaving owners as the weakest link.
I recognized that while demand for rentals was high, efficient management and consistent service standards were lacking. This insight led to the creation of a business model focused on professionalizing the management of serviced apartments and holiday homes, offering property owners higher returns while providing tenants with a superior hospitality experience.
The company's evolution is reflected in its diversified brand portfolio, encompassing "Residence, Select, Holidays, Inn, and Boutique," each catering to specific market segments. Our repeat customer rate of 48% speaks volumes about our commitment to service excellence and continuous improvement.
2-Can you elaborate on your recent partnerships? What impact do you expect these collaborations to have on your business and the local tourism sector?
Prime Hospitality Management Group has recently engaged in several strategic partnerships that are expected to significantly impact both the business and the local tourism sector in Egypt.
Ebny Developments Partnership: Prime Hospitality partnered with Ebny Developments to manage and operate the Prime Residence Heliopolis project. This is a residential-hotel concept located on Al Thawra Street in Heliopolis, near major hubs and Cairo International Airport. This collaboration is part of Ebny's broader expansion plan, which includes investments exceeding EGP 10 billion across various sectors such as residential, administrative, commercial, medical, hotel, and entertainment projects. It also aligns with Ebny's strategic vision to diversify its real estate portfolio.
New Speeco Partnership: managing Prime Residence New Alamein, North Coast with 60 units vary from studio, 1,2,3 bedrooms hotel apartments will all facilities, swimming pool, restaurant, gym, and coffee shop.
These partnerships enhance Prime Hospitality's expansion in Egypt, aiming to reach 1,000 residential hotel units.
3-How does Prime Hospitality differentiate itself from traditional hotel chains and other competitors in Egypt’s hospitality market?
Prime Hospitality distinguishes itself through a focused approach on serviced apartments and holiday homes, offering a compelling alternative to traditional hotel models. The company provides a higher return on investment (ROI) for property owners, aiming for 20-25% compared to the 6-8% typically seen in traditional apartment rentals. This is achieved through proactive management, hotel-like services, and a targeted approach to attracting high-yield clientele.
The company's integrated management approach, encompassing everything from property outfitting to leasing and hospitality services, ensures a seamless experience for both property owners and guests.
Prime Hospitality operates as a local brand committed to delivering international standards of service, attracting both domestic and foreign customers seeking a unique and value-driven accommodation experience.
4-Your group has expanded into Saudi Arabia and other regions in Egypt. What criteria do you consider for market selection?
In our experience, particularly in Saudi Arabia, establishing a partnership with a trustworthy local partner has proven crucial. This was highlighted when initial expansion efforts faced challenges due to partnership issues. A reliable local partner who understands the local market nuances is essential for success.
Beyond partnerships, we focus on markets with strong demand for serviced apartments and holiday homes, catering to both international and domestic travelers. Our expansion in new destinations that would add to our brand portfolio and fulfill our loyal customers' needs is our target. In addition to other locations such as Heliopolis, Mohandseen, Zamalek, Downtown, Maadi, and North Coast.
5-The Egyptian hospitality market is projected to grow to $3.94 billion by 2025. How do you see Prime Hospitality contributing to this growth?
The Egyptian real estate market presents a compelling investment opportunity for foreign and Arab investors, primarily due to favorable currency dynamics and increased purchasing power. The currency difference makes property in Egypt relatively more affordable compared to many other countries.
It is important to provide investors with a robust "contract on the investment," offering a tangible return through rental income. At Prime Hospitality Group, we aim to provide returns of up to 20%, which is a major draw for investors.
Additionally, we see the conversion of existing residential buildings into professionally managed serviced apartments as a quick and cost-effective way to expand the supply of quality accommodation and attract further investment.
6-With Egypt aiming to add 400,000 hotel rooms within five years, how do you think serviced apartments fit into this ambitious plan?
While the goal of adding 400,000 hotel rooms is ambitious, I think a more pragmatic approach lies in transforming existing residential buildings into hotel apartments or serviced apartments. This strategy is both time- and cost-efficient by converting existing buildings to match our product and brand standards, which our customers find appealing.
By converting and managing these properties as serviced apartments, Prime Hospitality can contribute significantly to meeting this ambitious goal, offering well-equipped, attractive, and readily available accommodation options. The cost of renovating existing buildings is estimated at approximately $300 per square meter, making it a more economically viable solution compared to constructing new hotels.
7-Serviced apartments are becoming a popular investment option for property owners. How does Prime Hospitality ensure high returns for investors while maintaining guest satisfaction?
Prime Hospitality prioritizes delivering high returns for investors through a focus on providing contracts with high ROI. This is achieved through efficient management, attracting high-demand tenants, and maintaining high occupancy rates.
To maintain guest satisfaction, Prime Hospitality focuses on providing hotel-like services and ensuring a consistent experience across all its properties. This is evidenced by the fact that 48% of its customers repeat their experience with Prime, indicating a high level of satisfaction with the services provided.
8-Looking ahead, where do you see Prime Hospitality in five years? Are there any upcoming projects or initiatives you are particularly excited about?
Our goal is to reach 1,000 units within the next two years, with a focus on securing deals with Investors who have prime real estate portfolios and investment power. These numbers are very important to me because this is what I am working on.
We have expansion plans into Libya, Oman, and Morocco, reflecting a broader vision of establishing Prime Hospitality as a leading global Egyptian brand in the hospitality sector.
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