In its latest Q1 report on the Egyptian market, Colliers International analysed the hospitality sector in Cairo, Sharm El Sheikh, Hurghada, and Alexandria.
Colliers maintains that hotel average rates recorded an increase in local currency due to the floatation of the EGP towards the end of 2016.
“However, Cairo achieved occupancy levels above 70% in Q1 2017, the highest since 2007. Occupancy is expected to increase further as consumer confidence returns to the city on account of government efforts.
In terms of the outlook, Colliers says that the planned airport in 6th October City is expected to see several businesses establish presence in western Cairo. “As such, the market may appeal to hotel investors as its base demand further grows. Midscale type developments are likely to see the highest growth as investors tackle market opportunities,” according to the report.
Colliers is expecting to see the opening of St. Regis Cairo and Radisson Blu Nasr City, and the re-opening of the Sheraton Cairo Hotel & Casino in 2017. As per the report, this represents a 10% increase in total branded supply within the city.