Sharm El Sheikh: Radisson is coming for you
Radisson Hotel Group is eyeing a re-entry into Sharm El Sheikh as part of a plan to have 50 hotels in North Africa under its belt by 2025, North Africa Director of Development Alban Mabille de Poncheville told Hotelier Middle East. Egypt and Morocco are the group’s focus countries, but it is also looking at Algeria and Tunisia.
Cairo and the new administrative capital also top the list of potential locations: Cairo is under consideration as a location for both new hotels and serviced apartments, while the group is considering greenfield projects for the new administrative capital.
And Sahel is also under consideration: The group is also looking to acquire and convert preexisting establishments along the Mediterranean, and is mindful of “the growing importance of the North Coast in Egypt,” de Poncheville said.
Radisson thinks tourism prospects for Egypt are on the up: “The market has started to show positive signs of recovery and the upcoming lifting of flight restrictions should further accelerate this trend,” de Poncheville said. Deputy tourism minister Ghada Shalaby said in July that Egypt was expecting a 45-60% y-o-y increase in incoming tourists in the “next period,” without specifying what this timeframe may be, while the ministry revised its targeted tourism revenues upward to USD 9 bn by the end of 2021.
In 2019, Radisson was on the road to become one of the largest hoteliers operating in Egypt after signing an agreement to acquire six new hotels in Heliopolis, New Cairo, Golf City, Ain Sokhna, and Hurghada. The properties will open at varying times between 3Q2019 and 4Q2021, the company said at the time, but we haven’t heard much since.
IN OTHER INVESTMENT NEWS-
The Hyatt is officially back in Cairo: Hyatt Hotels Corporation opened the doors of its 250-room Hyatt Regency Cairo West hotel, in a bid to “strengthen its growing brand footprint in North Africa,” according to a statement. Plans to launch the hotel were announced in 2019, after Hyatt signed a franchise agreement for its establishment with Al Dau Development. The EBRD provided financing for the project with a USD 12 mn loan to Al Dau in January. One of us got married at what was once called the Hyatt Nile Tower, or something to that effect, so we’re particularly happy this morning to see the brand make a comeback.