Mubasher: The hotel market in Egypt has registered improvement in operational performance, due to the positive rebound in the tourism sector which registered a growth of 16.5% in 2018, the World Travel and Tourism Council said, according to a recent research ‘Egypt Hotel Market Spotlight’ by Savills.
In 2018, hotel occupancy level in Cairo reached figures of 72.5% on average, the highest experienced since 2008.
This result was endorsed by a significant proportion of corporate travel into Cairo, with business travellers currently accounting for 67% of the city’s gross hospitality market demand.
“The Cairo and Giza submarkets significantly outpaced the wider Africa and Middle East and Northern Africa (MENA) regions, in both occupancy and average daily rate. Revenue per available room (RevPAR) increased by 23.1% year-on-year,” Savills said.
Savills, the Middle East’s leading real estate services provider, believes that the new additions to the hotel market have been considered positive, given the level of stock growth within the region.
“Cairo now has 18,800 rooms with major international groups investing in the city, including the Hilton Cairo Nile Maadi Towers, which comprises two towers of 23 floors (residential and five-star hotel),” the research added.
Savills expects further growth in the hotel sector in Egypt, with these large hotel groups investing in Cairo, including IHG which is scheduled to open in 2021 and introduce a 187-room Crowne Plaza hotel in Sheikh Zayed City.
“These hotels will be fuelled by international visitors but also by the domestic tourism market. With population set to increase by 8.8% to over 108mn people by 2023, domestic tourism spend will also be a significant driver for hotels in the coming years,” Savills research added.
