The new developments will see two hotels built on the North Coast, two in the popular resort city of Hurghada, and two in Marsa Alam.
Jaz Hotel Group, a subsidiary of Travco, has announced ambitious plans to establish six new hotels as part of a $215 million investment strategy set to unfold in the coming year.
This expansion will significantly enhance the company’s footprint, adding over 2,100 rooms to its existing portfolio and bringing the total to 20,000 rooms, according to CEO and Chairman Alaa Akel in an interview with Al Mal.
The new developments will see two hotels built on the North Coast, two in the popular resort city of Hurghada, and two in Marsa Alam.
To finance these projects, Jaz Hotel Group plans to utilize a government-backed subsidized loan program, which is designed to support hospitality companies in their growth initiatives, explained the CEO.
The Egyptian government, under Prime Minister Mostafa Madbouly, is offering an extensive EGP 50 billion ($2.6 billion) loan program to assist the hospitality sector, after tourism was impacted by geopolitical conflicts.
This initiative aims to facilitate the construction and operation of new hotels, the expansion of existing facilities, and the conversion of buildings into hotel spaces. Participants in the program can benefit from a competitive interest rate of 12%, making it a viable option for companies looking to expand their operations.
In December, Jaz Hotel Group made headlines with the acquisition of two hotels located near the Pyramids of Giza and the purchase of six cruise ships, with a total investment value of EGP 3.5 billion ($190 million).
Looking ahead, Jaz Hotels is also in discussions with the government’s Holding Company for Tourism and Hotels regarding the management and operation of two additional hotels. Moreover, the company has set its sights on international expansion, with plans to establish three hotels in Tanzania’s Zanzibar.
