According to data revealed by JLL’s The Cairo Real Estate Market Q3 2021, 250 keys were delivered in Egypt in Q3. The opening of Hyatt Regency West Cairo marks the first hotel completion of the year.
The new keys bring the capital’s total stock to around 28,000 keys. Almost 200 keys are expected to be delivered in Q4 2021.
The Egyptian government has eased flight restrictions and permitted hotels’ operational capacity to increase from 50 to 70 percent, following the notable increase in vaccination rates over the past quarter. The relaxation of rules worked to the advantage of hotel operators, as domestic tourism slightly increased as people opted for staycations rather than traveling abroad over the summer season.
A modest increase in tourism from some of the Gulf countries also helped over the three-month period.
The occupancy rate registered 41 percent in the year-to-date August 2021 phase, compared to 29 percent in the same period last year. This, combined with a 3 percent year-on-year rise in average daily rates (ADR), meant that revenue per available room (RevPar) rose by 45 percent to USD 35 in Q3 2021.
While performance is not yet back to pre-Covid-19 levels, the third quarter showed signs of a gradual recovery in the hospitality sector in Cairo. However, over the medium to long term, the recovery rate will be dependent on the government’s efforts in speeding up the rollout of its vaccination program, coupled with its strategy to enhance and deliver new and existing tourist destinations.