Cairo’s hospitality industry continued its strong momentum in the second quarter of 2025 as tourism demand reached record levels nationwide. JLL Cairo Market Dynamics Q2 2025 reports the city’s hotel supply expanded significantly with the opening of the Giza Palace Hotel and Spa and Hyatt Centric Cairo West.
Hotel performance strengthens across Cairo
Despite regional geopolitical challenges, Cairo’s hospitality sector demonstrated remarkable resilience and consistent recovery throughout the second quarter of 2025. Data from STR Global showed occupancy rising by 3.6 percentage points year on year to reach 71.1 percent. Moreover, the average daily rate increased by 11.5 percent to USD 180, strengthening investor confidence in the market. As a result, revenue per available room grew by 17.4 percent annually to USD 128. These gains underline Cairo’s growing appeal as both a tourism and business destination in the Middle East.
Local hospitality brands gain traction
Meanwhile, developers across Egypt are shifting from relying on global operators toward creating authentic home-grown hospitality brands rooted in local culture. This transition highlights a desire for greater brand control, operational flexibility and deeper connections with Egyptian identity and heritage. For instance, Guira Development recently introduced Mazeej Residences and Hotels, blending modern architecture with cultural storytelling to provide an immersive guest experience. Consequently, this movement signals a maturing hospitality market that values creativity, individuality and long-term brand equity.
Tourism growth drives market optimism
Egypt’s tourism industry continued to thrive during the first half of 2025, welcoming 8.7 million visitors from around the world. This represents an impressive increase of 24 percent compared with the same period last year, reinforcing Egypt’s status as a resilient global destination. Cairo, being the capital and cultural center, benefits most from this growth due to its mix of heritage sites and new developments. Additionally, approximately 970 new hotel keys are expected to be added by the end of 2025.
Developers focus on experience-led hospitality
As travelers increasingly seek meaningful and memorable stays, developers in Cairo are emphasizing experience-led concepts that merge luxury with authenticity. Integrated mixed-use projects combining hotels, retail and residential elements are becoming more common across emerging districts such as West Cairo. Furthermore, many projects are designed to reflect sustainability and community engagement, aligning with the global shift toward responsible tourism. This approach enhances visitor satisfaction while positioning Cairo as a dynamic urban tourism hub.
Outlook for Cairo’s hospitality sector
Cairo’s hospitality sector will maintain steady growth, supported by economic stability and ongoing government tourism initiatives. Continued investment in infrastructure, transport and cultural attractions will further elevate Cairo’s global reputation as a travel and business destination. Ultimately, the rise of local hospitality brands and the strong performance indicators reflect a confident and forward-looking market environment. As a result, Cairo’s hospitality landscape is evolving into one defined by diversity, innovation and lasting visitor appeal.
Full report click here
jll.com
