Dubai, United Arab Emirates, Travel & Markets, 28th July 2022: Ishraq Hospitality, the asset management and hospitality division of Mohamed & Obaid AlMulla Group, and Capital Elite Development, an Egypt-based real estate development company, have signed a memorandum of understanding (MoU) to launch two new hotels in the New Capital, Cairo, Egypt. The properties will jointly add around 600 keys to the Egyptian hospitality market when they open to guests in 2025.
Ishraq Hospitality will work closely with Capital Elite Development to bring the project to fruition, following which, the group will manage operations at both properties, with the goal of adding to its well-earned reputation for highly successful third-party hospitality management.
“The signing of the MoU between Ishraq Hospitality and Capital Elite Development brings together two companies that are well regarded leaders in their respective fields. The partnership will see the combining of world-class project development and hospitality management experience, which will result in the delivery and operation of two properties that are sure to dramatically enrich the burgeoning Egyptian hospitality sector.
“We are very excited to embark on this journey with Capital Elite Development to expand into one of the most culturally significant tourism destinations in the world,” said Sherif Beshara, Group CEO at Mohamed & Obaid Almulla Group.
The signing of the MoU aligns with Ishraq Hospitality’s strategic expansion plans, which were first unveiled in May at the Arabian Travel Market 2022 in Dubai. During the event, the company announced its intent to expand into Egypt, while further developing its home base market of the UAE.
Further demonstrating its commitment to its expansion plans, Ishraq Hospitality is now fully dedicated to its expansion into Egypt. The launch of the two properties ties perfectly into the country’s rebounding hospitality market post pandemic.
In May 2022, a report by Egypt Today said that the country’s Information and Decision Support Centre (IDSC) said that the occupancy rates in Cairo hotels increased by 106% in the first quarter of 2022, while the rates in Sharm El Sheikh hotels rose by 46% and Hurghada by 84%. The report attributed the increase in occupancy rates to several reasons, primarily the easing of restrictions on travel, and the return of recreational tourism, in addition to the strong political relations between Egypt and important tourism markets in the Middle East, North Africa, and Europe [1].
“The Egyptian hospitality sector has been recovering steadily since 2021 thanks to multiple influences, and once complete, we are confident that the two properties will contribute to the growth and performance of the hospitality sector in Egypt,” said Mustafa Mansour, Chairman of Capital Elite Development.
Egypt’s hospitality sector began recuperating in 2021 according to the ‘Real Estate: On Solid Ground – April 2022’ report published by the American Chamber of Commerce in Egypt. It highlighted the hospitality sector’s renewed vigour, stating that the sector is shaking off the many impacts of COVID-19. According to data from hoteliers, bookings soared 400% from the UK, Turkey and other top markets during H2 2021, compared to the first half of the year. The report also said that improved fundamentals, state-backed support, the launch of new tourism attractions and other drivers have all contributed to the rebound of the hospitality market
