Sturdy growth sees occupancy rates in Cairo’s hospitality sector jump to 64% in Q4 2022

The Egyptian government's focused efforts on enhancing the overall investment climate in the tourism industry is reflected in the hospitality sector’s continued sturdy growth during the last quarter of 2022, according to JLL’s Cairo 2022 Year in Review report.

Egypt, which hosted the 27th session of the Conference of the Parties of the UNFCCC (COP 27) at Sharm el-Sheikh in November last year and offered attractive incentives to the 2022 FIFA World Cup visitors in Qatar, saw increased spending in foreign currencies by inbound tourists that has further helped sustain activity levels in the sector.

“With goals to make Egypt the travel destination of 30 million tourists annually by 2028 and plans to increase the number of airline seats to the country by three-fold, opportunities abound for international hospitality brands to enter the market. Tourism is a key pillar of Egypt’s economy and an infrastructural boost in the leisure and travel industry will have a multiplier effect across all sectors of the economy. This could drive the much-needed foreign direct investments into the country and stimulate growth overall,” said Ayman Sami, Country Head, Egypt at JLL.  

Despite the challenging economic environment of 2022, hotels in the capital continued to rebound in Q4. Cairo’s occupancy rate continued to recover in the last quarter with January – November 2022 readings showing an increase to 64%, up from 48% in the corresponding period last year. Over the same period, average daily rates (ADR) jumped by 66% to USD 152, strengthening revenue per available room (RevPar) up by almost 122%, reaching USD 97.

In 2022, around 200 keys were added, taking the capital’s total hotel stock to approximately 28,000 keys. The city is also on track to see the completion of 900 hotel keys in 2023.