Africa -  Egypt - Cairo

Egypt’s GDP grew by 5.3% in 2018 and is forecast to accelerate by almost 5.5%, according to the IMF. The government is investing in expanding its rail infrastructure and advancing its solar projects throughout the country. A new city is being built about 40km East of Cairo and is planned to replace the capital. The presidential complex as well as 34 ministries are planned to move to the new city, that eventually will be home to at least 6.5m people. The government wants to start running the country from the new city by mid-2020, but the US$58bn project has struggled to attract foreign direct investment outside of the oil and gas industry after investors have pulled out.

Cairo exhibited a 20% surge in RevPAR supported by the growth in both occupancy and average rates. Occupancy reached 74% in 2018; the highest level since 2010. Tourism in Egypt recovered on the back of improved security perception, government initiatives and marketing campaigns to attract tourists as well as European carriers resuming flights to Cairo. Average rates increased by 17%, benefitted from the currency devaluation and growth in room night demand. HVS forecasts RevPAR to grow further in Cairo over the next three to five years which will result in hotel values stabilizing.

Cairo International Airport saw an increase in passenger numbers of 18.3% year-on-year in December 2018 when 1.2m passengers went through the airport.

New hotel developments in Cairo include Radisson Hotel Group planning to open a total of 939 rooms between 2020 and 2022. Accorhotels has three hotels planned in Cairo with a total 750 rooms between 2022 and 2023. Hilton has planned to open four hotels between the end of this year and 2024 with a combined amount of 1519 rooms.

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Egypt - Cairo RevPAR Change

Egypt - Cairo RevPAR

Year RevPAR
2015
2016 68.20
2017 72.00
2018 85.80
2019 (f) 86.60
2020 (f) 88.80
2021 (f) 88.80

For more information, please contact:

Tim Smith, MRICS
[email protected]
  • +27 797 342296 (w)
Rishabh Thapar
[email protected]
  • +27 0 792790584 (m)
Laura Dutrieux
[email protected]