Sharm El-Sheikh, Qesm Sharm Ash Sheikh, South Sinai Governorate, Egypt - panoramio
CAIRO - 28 May 2017: Hotel occupancy rates in Cairo have recorded the highest level since 2007 in the first quarter of 2017, surpassing 70 percent, Colliers International said in its Q1 Egypt report.
Occupancy levels in Cairo, Sharm el-Sheikh and Hurghada are expected to increase this year on the flotation of the Egyptian pound, Colliers added.
The hotel average rates in local currency have swelled in Q1 on the flotation as well, but it declined on the U.S. dollar side, the report said.
Colliers expected the occupancy rates to further increase on restoring consumer confidence, adding that it is optimistic about the planned airport in the 6 October city, which it said would increase flow of businesses in western Cairo.
The opening of St. Regis Cairo and Radisson Blu Nasr City was also said to enlarge the hotel supply in the market by 10 percent, Colliers highlighted.
Main market players in Cairo are Marriott international and France’s Accor, altogether holding 5,000 keys, according to the report.
In Sharm el-Sheikh, the market supply is expected to grow by 4.5 percent on the expected opening of Citystars complex, which will include Raffles, Fairmont and Swissotel hotels, the report said.
In terms of occupancy rate, it hiked 8 percent in Q1 2017, with expectations to grow further over the year.
Colliers expects an increase on the demand level in 2017 as a result of lifting remaining travel bans and lowering the cost of visiting the destination after the pound’s free-float.
If British flights have been resumed in 2017, as per indication of Thomas Cook, the visiting levels of British tourists will likely be strong, according to the report.
The market supply in Hurghada is expected to stabilize in Q1 2017, with Fairmont Soma Bay and Hilton Hurghada projected to open their doors by 2020.
In Alexandria, the supply is predicted to remain stable in 2017 and 2018 due to delays in projects’ developments, Colliers added.