Key figures and insights: Egypt’s hospitality scene

Key figures and insights: Egypt’s hospitality scene

Key figures and insights into Egypt’s hospitality scene

Charting the hospitality landscape in Egypt, JLL Q1 2024’s report highlights new market opportunities and more. 

Residential sector growth

Egypt’s efforts to reduce its financial burden and attract future investments have led to a promising start in the residential sector. Over 7,000 units were completed in the first quarter of 2024, primarily in master-planned developments. This brings the total residential stock to approximately 276,000 units. In addition, 24,000 units are expected to be completed throughout the rest of 2024, thereby contributing to the growth of the residential sector in Egypt.

Hospitality sector analysis

No major hotels were added in Q1 2024. Consequently, this maintains Cairo’s hotel stock at around 26,700 keys. However, the remainder of the year is expected to witness the opening of several new and renovated hotels, adding approximately 1,400 additional keys to the existing stock. Moreover, the interest among operators to enter or expand in the Cairo market continues to build up. Moreover, interesting mergers and acquisitions have been recently unfolding. For example, the Abu Dhabi wealth fund ADQ acquired a 40.5 percent stake in Talaat Moustafa Group’s (TMG) hospitality arm, ICON and seven heritage hotels. This substantial FDI demonstrates the restored investor confidence in the Egyptian tourism and hospitality sector.

Performance analysis and future prospects

In 2023, Egypt set a new record by welcoming almost 15 million visitors, surpassing the previous high in 2010. The momentum is expected to continue in 2024. However, performance in the first quarter was subdued due to currency devaluation. According to STR, the capital’s citywide occupancy was recorded at 65 percent for year to (YT) March 2024. Over the same period, the average daily rate (ADR) reached USD 123, reflecting a 10 percent decline when compared to the same period last year. This resulted in the revenue per available room (RevPAR) decreasing by 19 percent y-o-y to reach USD 80.

Investment initiatives and future developments

A new initiative has been launched in Egypt, with an investment of EGP 50 billion, to enhance the tourism sector. As part of this program, the government is providing loan facilities and special incentives. The goal of the initiative is to foster greater private-sector participation in the country’s tourism industry. This aligns with Egypt’s objective of expanding its hotel capacity by nearly 250,000 keys. Consequently, Egypt aims to welcome 30 million visitors by 2028. Moreover, the recent Ras El Hekma mega-deal with the UAE is expected to further boost the sector. Additionally, multiple hospitality and entertainment projects are in the pipeline for the coastal city. Once completed, the project aims to attract around 40 to 50 million visitors into the country.

Important figures from JLL

  • Office space delivered in Q1 2024: 9,500 sqm.
  • Total office stock after Trivium Zayed: Over 2 million sqm.
  • Expected office space delivery for 2024: Almost 555,000 sqm.
  • Average office rent in Q1 2024: USD 357/sqm/year.
  • Prime office rents in Q1 2024: USD 480/sqm/year.
  • Residential stock after Q1 2024: Approx. 276,000 units.
  • Residential units expected in 2024: Nearly 24,000 units.
  • Annual sales price increase in 6th October: Nearly 83 percent.
  • Annual sales price increase in New Cairo: 95 percent.
  • Annual rental rate increase in 6th October: Around 42 percent.
  • Annual rental rate increase in New Cairo: About 43 percent.
  • FDI deal: USD 24 billion.
  • Debt offset for Ras El Hekma deal: USD 11 billion.
  • Financial support from international institutions: Over USD 20 billion.
  • Total retail stock in Cairo in Q1 2024: Around 3 million sqm.
  • Expected GLA delivery: About 402,000 sq. m.
  • Increase in average rental rates across primary malls in Q1 2024: Around 8 percent.
  • Increase in average rental rates across secondary malls in Q1 2024: About 14 percent.
  • Drop in average vacancy rate from Q1 2023 to Q1 2024: From 9 percent to 8 percent.
  • Citywide hotel occupancy rate in Q1 2024: 65 percent.
  • Average daily rate (ADR) for hotels in Q1 2024: USD 123.
  • Year-on-year decline in ADR for hotels in Q1 2024: 10 percent.
  • Year-on-year decline in RevPAR in Q1 2024: 19 percent.
  • Tourism sector investment: EGP 50 billion.
  • Objective: Expand hotel capacity by nearly 250,000 keys by 2028.
  • Expected visitors from Ras El Hekma deal: 40 to 50 million.

More figures from the Egypt Tourism Authority

  • Record number of tourists in 2023: 15 million
  • Expected expansion in 2024:
  • Percentage of GDP allocated to infrastructure development: 22 percent.
  • Increase in hotel room nights from 220 to 245 during the next five years.


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About author

Rita Ghantous

Rita Ghantous is a hospitality aficionado and a passionate writer with over 9 years’ experience in journalism and 5 years experience in the hospitality sector. Her passion for the performance arts and writing, started early. At 10 years old she was praised for her solo performance of the Beatles song “All My Love” accompanied by a guitarist, and was approached by a French talent scout during her school play. However, her love for writing was stronger. Fresh out of school, she became a freelance journalist for Noun Magazine and was awarded the Silver Award Cup for Outstanding Poetry, by The International Library of Poetry (Washington DC). She studied Business Management and earned a Masters degree from Saint Joseph University (USJ), her thesis was published in the Proche-Orient, Études en Management book. She then pursued a career in the hospitality industry but didn’t give up writing, that is why she launched the Four Points by Sheraton Le Verdun Newsletter. Her love for the industry and journalism led her to Hospitality Services - the organizers of the HORECA trade show in Lebanon, Saudi Arabia, Kuwait and Jordan, as well as Salon Du Chocolat, Beirut Cooking Festival, Whisky Live and other regional shows. She is currently the Publications Executive of Hospitality News Middle East, Taste & Flavors and Lebanon Traveler. It is with ultimate devotion for her magazines that she demonstrates her hospitality savoir-faire.

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