According to JLL’s ‘The Cairo Real Estate Market – Q1 2020’ report, the global COVID-19 pandemic has resulted in a new wave of transformation in e-commerce in Cairo and across Egypt.
Due to the closure of malls, the logistics landscape in Egypt is transforming. Consumers have had a taste for the efficiency associated with e-commerce, and therefore the sector is now striving to keep up with the exceptional increase in demand for online shopping.
When it comes to Cairo’s hotel supply, it remained stable at 23,000 keys with no additional completions in the first quarter of 2020.
Around 400 keys are expected to be delivered by the end of the year. Yet, some projects have been put on hold while others are expected to experience delays.
As with other parts of the region, the hospitality sector has been the most severely impacted as a result of the pandemic. While the first half of the quarter remained strong, with YT Feb 2020 occupancy rates registering almost 80 percent (versus 77 percent in the YT Feb 2019), these declined sharply in the weeks to follow as travel restrictions came into effect.
Average daily room rates (ADR’s) and revenue per available rooms (RevPar) recorded USD 92 and USD 71 respectively in the YT Feb 2020, before dropping significantly in March.
Following the initiative to allocate its largest financial plan of EGP 50 billion for hotel redevelopment and renovation, the CBE has recently granted hotels and tourist facilities two-year loans with a six-month grace period in efforts to support the hospitality sector during these challenging times.Add to Favorites