ADFD to Invest $172 Million in Three Hotels in Egypt

In a boost to the Egypt’s hospitality sector, the Abu Dhabi government-owned Abu Dhabi Fund for Development Fund (ADFD), through one of its subsidiaries Abu Dhabi Tourism Investment Co (ADTIC), is planning to invest $172 million to develop three hotels in Egypt.

The ADFD’s three investments in Egypt includes a $52-million development of 298-room Movenpick Sharm El Sheikh which is owned by Accor Group and is expected to be finished in December 2024 adding 120 rooms.

The $40-million overhaul of the Mercure Hurghada Resort with 469 rooms that is to be rebranded as a Movenpick. The works on the Hurghada Resort will begin in April this year and expected to be completed by September 2025.

The ADFD has also earmarked $80 million for a hotel it owns near Cairo’s Giza Pyramids, which is expected to be opened in August 2026 under the Accor brand, Sofitel. The Egypt-focussed ADTIC is 84% owned by the ADFD.

As part of the developing the hotel in the Giza {Pyramids region, construction of the now-demolished Mercure hotel will kick off before mid-2024 and is scheduled to be completed in two years at most. The project was first announced in July.

New Incentives

It may be recalled that the Egyptian Government has introduced new incentive packages to attract local and foreign investors for the construction of new hotel projects in the country. The move is expected to create 400,000 hotel rooms within five years, according to Egypt Tourism Minister Ahmed Issa.

Issa, who was addressing delegates at a business conference in Cairo a few months ago, explained that the new hotel projects that have been completed in the country would add nearly 25,000 hotel rooms. With more number of tourist arriving in Egypt, the Egyptian government aims to further stimulate the sector in the country.

“The government aims to attract as many as 30 million inbound tourists by 2028. We are now working on a set of incentives to encourage the private sector and foreign investors to build new hotel rooms to help Egypt attain the targeted number of tourists,” he said.

According to the Central Agency for Public Mobilisation and Statistics, Egypt’s tourism sector has witnessed a remarkable resurgence in recent years, especially in the post-COVID era as the country saw a substantial increase in the number of tourists visiting Egypt.

This surge has been particularly striking, with visitor numbers surging from a figure of 4.9 million recorded two years ago to an estimated 15 million or possibly even more in 2023.

Further Growth Predicted in 2024

The Egypt Tourism Chamber is optimistic regarding the sector’s growth and it forecasts that Egypt is on track to receive approximately 21 million tourists in this year.

The government’s efforts to increase revenue from tourism sector include several initiatives, such as promotional campaigns aimed at enhancing Egypt’s global reputation as a premier tourist destination and promoting cost-effective air travel options, all of which are contributing to the bright prospects for Egypt’s tourism in the years ahead.