Egypt’s hospitality sector continues to attract strong investor confidence, but financing and project delivery, rather than demand, have emerged as the main challenges facing the industry, according to a new survey by HVS.
The survey found that 97% of respondents were positive about the sector’s outlook over the next three to five years, while 55% identified capital-related constraints, including foreign exchange risk, equity availability, and the cost or availability of debt, as their main concerns. None of the respondents cited visibility on tourism demand as their greatest constraint.
The findings were presented at the inaugural Future Hospitality Summit (FHS) Egypt, which concluded on November 11 at Sofitel Downtown Cairo Nile. The event brought together more than 400 participants from over 210 companies, including investors, developers, hotel owners, operators, lenders, government representatives and international hospitality brands.
Held under the auspices of the Ministry of Housing, Utilities and Urban Communities, the summit featured 31 sessions and more than 75 speakers under the theme “Where Heritage Inspires Investment.”
Speakers highlighted Egypt’s record of 19 million international tourist arrivals and $18.2bn in tourism receipts in 2025, alongside the country’s target of attracting 30 million visitors annually by 2030. Discussions repeatedly underscored financing, air connectivity and project execution as decisive factors in translating investor confidence into operational hotels.
Operators announce new projects across Egypt
Radisson Hotel Group aims to have 30 hotels, resorts, serviced apartments and branded residences operating or under development in Egypt by 2030, according to Ayman Ezzedine, Senior Director of Development for the Middle East, Northeast Africa and Pakistan at Radisson Hotel Group.
The group currently operates five hotels in Egypt, with another eight under development. Its 2030 target therefore includes both operational properties and projects in the development pipeline.
On the North Coast, the group signed an agreement for the 162-room Radisson Blu Resort El Alamein, its second resort in the destination. On the Red Sea coast, the Radisson Collection Resort at Marsa Alam Port Venice is expected to introduce the Radisson Collection brand to the area.
In Greater Cairo, the 398-key Radisson Serviced Apartments Kawn 6th of October City will form part of a mixed-use development by Elaf. Meanwhile, a management agreement with Al Naser Developments for 150 serviced apartments marks the group’s first property in the New Administrative Capital.
Elie Younes, Global Chief Development Officer at Radisson Hotel Group, said during a separate panel discussion that the group would turn down projects that lacked secured financing, realistic development costs or experienced owners.
In the Delta, Accor, El Borolossy Real Estate Development and BANN Holding, with the facilitation of iBrand Business Consultancy, announced plans for the first five-star Mövenpick hotel in New Mansoura City.
The hotel will form part of El Borolossy’s SANA Towers, a mixed-use residential, commercial and hospitality development on the Mediterranean waterfront. The project also marks Accor’s entry into the Delta under the Mövenpick brand.
The partners did not disclose the hotel’s room count or expected opening date. Nayyera Ashour, General Manager of BANN Holding in Egypt, said the company would provide technical and operational support and oversee the pre-opening and trial-operation phases.
Dr Eman Salah, Co-founder and CEO of iBrand Business Consultancy, said the company’s market study had identified a gap in hotel supply relative to New Mansoura’s potential.
On the North Coast, SAFIR Hotels announced MERSEA Hotel at kilometre 76 of the International Coastal Road, approximately 10 minutes from New Alamein, in partnership with APACHE Developments and Toledo Developments.
Misr Abu Dhabi Real Estate Investments, Brassbell Hospitality Group and HVS Middle East and Africa also held a signing ceremony, while delegates heard how Canopy by Hilton was brought to Sumu Boulevard in Mostakbal City, developed by PARAGON | ADEER in partnership with The Code.
However, signing development agreements is only the first step towards delivering new hotel capacity, said Maya Ziade, Chief Development Officer for Premium, Midscale and Economy in the Middle East, Africa and Türkiye at Accor.
Accor signed agreements covering 2,600 keys this year, approximately 70% more than in 2025. Ziade stressed the importance of accelerating project delivery and bringing signed developments into operation.
The numbers behind the pipeline
The HVS Egypt Hospitality Investment and Market Sentiment Survey 2026, conducted by HVS Middle East and Africa in partnership with FHS Egypt, ran from September 9 to October 30.
The findings showed that 65% of respondents were very positive about the sector’s outlook, while another 32% expressed a positive view. Meanwhile, 86% expected revenue per available room (RevPAR) to improve over the next three years.
Foreign exchange risk emerged as the leading concern, cited by 32% of respondents, followed by regional geopolitical uncertainty at 29%. Additionally, 45% expected Gulf investors to lead the next wave of capital entering Egypt’s hospitality market.
“The conversation has shifted to capital deployment, air connectivity, workforce development and execution,” said Hala Matar Choufany, President of HVS for the Middle East and Africa.
HVS cautioned that the findings reflect market sentiment rather than a statistically representative sample. The report also did not disclose the total number of respondents.
Market data presented at the summit reinforced the positive outlook. According to Mo El Hadi, Associate Account Director for the Middle East and Africa at STR, a CoStar Group company, Egypt ranked eighth globally in hotel demand growth in 2025, recording an increase of 10%, and ranked first in Africa in terms of total hotel demand.
STR estimates that Egypt has approximately 46,000 hotel rooms in its development pipeline, placing the country ninth globally. Around 40% of these rooms are already under construction.
Trevor Ward, Managing Director of W Hospitality Group, said Egypt accounts for approximately 27% of Africa’s hotel development pipeline by number of properties and nearly 40% by room count. Greater Cairo alone represents 18% of the continent’s pipeline, he added.
Samer Alkharashi, Director of the UN Tourism Regional Office for the Middle East, said international tourist arrivals increased by more than 20% in 2025 and continued rising during the first half of 2026, even as the wider Middle East recorded a 22% decline.
“Pipelines measure ambition. Delivery creates value,” he said.
