Several Egyptian property developers are shifting towards hotel investments to bolster their US dollar earnings and broaden their investment mix, as indicated by the heads of five real estate companies in discussions with Asharq Business, reported Arab Finance.
These developers are looking to protect their assets from potential currency fluctuations while also reaping benefits from mixed-use developments that include administrative, commercial, and leisure components.
This shift aligns with the Egyptian Government's initiative to expand the country's hotel room inventory from the current 230,000 to approximately 500,000 by 2028.
Al Ahly Sabbour chairman Ahmed Sabbour operates five hotels with a combined offering of 580 rooms across various locations, including Ain Sokhna, the North Coast, and West Cairo. Likewise, Maadar Development CEO Ahamed Ehab plans to introduce an additional 600 rooms through three new hotels within its Azha project in Ain Sokhna. Misr Italia Properties is also venturing further into hospitality by creating a dedicated division for this sector and initiating the development of two hotels comprising 200 rooms within its Solare project on the North Coast. The two properties represent an investment of $80m.
In addition, Madinat Masr CEO Abdullah Salam announced that his company is collaborating with a consultancy to explore upcoming hotel ventures aimed at generating foreign currency revenue and increasing stable income streams. Abu Soma Development Company has earmarked an investment of approximately $190m has been earmarked for management of 3,100 hotel rooms over six-year period, with $150m specifically allocated for constructing new hotels.
