Egypt's hospitality sector continues to attract strong investor confidence, with 97% of respondents in a recent survey by HVS expressing a positive outlook for the industry over the next three to five years. However, financing and project delivery have emerged as the main challenges facing the industry, with 55% of respondents citing capital-related constraints, including foreign exchange risk, equity availability, and the cost or availability of debt.
The survey, presented at the inaugural Future Hospitality Summit (FHS) Egypt, found that none of the respondents cited visibility on tourism demand as their greatest constraint. The event brought together over 400 participants from more than 210 companies, including investors, developers, hotel owners, operators, lenders, government representatives, and international hospitality brands. The summit featured 31 sessions and over 75 speakers under the theme "Where Heritage Inspires Investment."
Speakers highlighted Egypt's record of 19 million international tourist arrivals and $18.2 billion 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. Egypt's hospitality sector is expected to play a significant role in achieving the country's tourism goals.
Several operators have announced new projects across Egypt, including Radisson Hotel Group, which aims to have 30 hotels, resorts, serviced apartments, and branded residences operating or under development in Egypt by 2030. The group currently operates five hotels in Egypt, with another eight under development. Radisson Hotel Group's expansion plans include new properties in destinations such as the North Coast and the Red Sea coast.
Other operators, such as Accor, have also announced new projects, including the first five-star Mövenpick hotel in New Mansoura City, in partnership with El Borolossy Real Estate Development and BANN Holding. 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 marks Accor's entry into the Delta under the Mövenpick brand.
Despite the optimism, signing development agreements is only the first step towards delivering new hotel capacity. Maya Ziade, Chief Development Officer for Premium, Midscale and Economy in the Middle East, Africa and Türkiye at Accor, stressed the importance of accelerating project delivery and bringing signed developments into operation. Accor signed agreements covering 2,600 keys this year, approximately 70% more than in 2025.
The HVS Egypt Hospitality Investment and Market Sentiment Survey 2026 found 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%.
Key points
- 97% of respondents in a recent survey by HVS expressed a positive outlook for Egypt's hospitality industry over the next three to five years.
- Financing and project delivery have emerged as the main challenges facing Egypt's hospitality industry, with 55% of respondents citing capital-related constraints.
- Egypt aims to attract 30 million visitors annually by 2030, with the hospitality sector expected to play a significant role in achieving this goal.
