Hilton adds another leg to Egyptian hotel expansion strategy

Hilton Zamalek Residence Cairo, Egypt. Photo credit: Hilton (Hilton plans to open nine hotels with 2,390 guestrooms in Upper Egypt and other governorates within the next five years. )

Hilton is adding 2,390 new guestrooms to its current Egyptian development pipeline, with plans to open nine new hotels in the Upper Egypt region and other governorates within the next five years.

According to Carlos Khneisser, VP of development for the Middle East, North Africa and Turkey, the new hotels will be developed in Cairo, Port Said, Ain Sokhna and New Damietta. Hotels currently under construction in these cities include the 179-room DoubleTree by Hilton Mangroovy in El Gouna, the 715-room Hilton Cairo Grand Nile, the 120-room Hilton Garden Inn Damietta, the 197-room DoubleTree by Hilton Ain Al Sokhna, the 249-room Hilton Cairo Nile Maadi, the 130-room Hilton Garden Inn at Cairo Business Park, the 240-room Hilton Giza Pyramids the 180-room Hilton Ain Sokhna and the 200-room Hilton Port Said. 

The group's most recent contract is for the DoubleTree by Hilton Mangroovy. Other recent signings include two hotels, respectively, in New Damietta with Saudi Egyptian Company for Reconstruction and the governate of Port Said with Tower Developments. 
Khneisser told Thomson Reuters Zawya that Hilton is focusing on new development opportunities to boost its presence in Egypt through entering new governorates with its affiliated brands. Its current portfolio in the country operates under the Hilton and Conrad brands. With these new expansion plans, the group will introduce other brands under its management to Egypt, including DoubleTree by Hilton, Hilton Garden Inn and Waldorf Astoria. 
Hilton opened the 593-room Hilton Cairo Heliopolis last month through a management contract with Gulf Egypt For Hotels & Tourism. During this signing, Hilton also agreed to manage and operate the 247-room Heliopolis Towers Hotel, which is planned to operate under the Waldorf Astoria brand. These two new properties pushed Hilton's hotel and resort inventory number in Egypt to 17. The first hotel project slated to open in 2019 is the 715-room Hilton Maadi, which is owned by the Saudi Egyptian Company for Reconstruction. 

Hilton announced additional plans to expand in Egypt in August and November 2017. In the first announcement, the group planned to double its presence in the country within seven to 10 years by boosting its inventory in Morocco and entering Tunisia and Algeria. In November, Hilton set a new target to add 2,500 guestrooms in seven hotel projects in Egypt by the end of 2022, increasing its current portfolio in the country 40 percent. The new properties will join the company's other hotels in 6th of October City, Hurghada, Sharm El Sheikh, Alexandria, Luxor, Cairo and Marsa Alam.