Although no major hotels were added at the beginning of the year, maintaining the current hotel stock at around 26,700 rooms, the remainder of the year is expected to open several new hotels and renovations, adding approximately 1,400 additional rooms.
Cairo's secondary market experienced a surge in residential sales prices by almost 83% on the 6th of October and by 95% in New Cairo, according to JLL’s Cairo Real Estate Market Overview Report for Q1 2024.
Cross-border collaborations, an increase in foreign direct investment (FDI), and the EGP 50 billion initiative to enhance tourism are strengthening Cairo's tourism and hospitality sector. These efforts are in line with the country's goal of welcoming 30 million visitors by 2028 and expanding its hotel capacity by nearly 250,000 rooms.
Although no major hotels were added at the beginning of the year, maintaining the current hotel stock at around 26,700 rooms, the remainder of the year is expected to open several new hotels and renovations, adding approximately 1,400 additional rooms.
The performance of Cairo's hotels in the first quarter showed a decline in city-wide occupancy to 65% for the period ending in March 2024. During the same period, the average daily rate (ADR) reached USD 123, marking a 10% decrease compared to the previous year. Consequently, the revenue per available room (RevPAR) experienced a 19% year-on-year decline, reaching USD 80.
Egypt experienced a record influx of 15 million tourists in 2023, and this positive momentum is expected to continue this year. Additionally, the recently established Ras El Hekma deal with the UAE will contribute to the sector's growth by introducing various hospitality and entertainment projects in the coastal city.
