Hilton sets new target to expand Egyptian hotel portfolio

More developers, like Hilton, are taking advantage of the increasing demand for hotel rooms in Africa.
Hilton Luxor Resort & Spa, Egypt, Africa

Hilton Worldwide has set a new target for hotels in Egypt. According to Mohab Ghali, Hilton's VP for North Africa, the hotel group is planning to add 2,500 guestrooms in seven hotel projects to the country's inventory by the end of 2022, a 40-percent increase from its current 17-hotel Egyptian portfolio.

Hilton's other 17 hotels in Egypt operate in 6th of October City, Hurghada, Sharm El Sheikh, Alexandria, Luxor, Cairo and Marsa Alam.  

As the government works to restore stability and revive the tourism industry following the 2011 revolt, Egypt's tourism market has seen strong growth in the past few months. “The average occupancy rate at hotels in Egypt has increased by 20-25 percent this year,” Ghali told Reuters. The number of inbound travelers to the country is forecast to sustain its growth through 2016.

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Egypt's tourism revenue saw significant year-on-year growth by 210 percent in the first nine months of 2017, according to a government official. Revenue totals for the industry reached $5.3 billion. When Egypt's currency was permitted fluctuate last year, which cut the value of Egypt's pound in half, the tourism market receives a much-needed boost, despite political struggles and two place crashes spooking travelers away from resorts. “As long as there is economic and political stability, you’ll see the numbers of tourists improving,” Ghali explained, especially from local visitors, who attribute to 40 percent of hotel reservations. “Why would we sign new contracts and expand here if we weren’t optimistic about Egypt?”   

Outside of Egypt, Hilton has launched its Hilton Africa Growth Initiative to continue expanding its presence throughout Sub-Saharan African. As part of this $50-million investment over the next five years, the hotel group will convert about 100 hotels with close to 20,000 guestrooms in multiple African markets into Hilton properties operating under their brands Hilton, DoubleTree by Hilton and Curio Collection.