Egypt’s hospitality sector is expected to experience growth in the coming years, driven by a significant increase in tourist arrivals, particularly from regional and European markets.
The positive outlook is underpinned by robust performance in the wider tourism sector, which saw tourist arrivals jump by 24 per cent in the first half of the year, reaching a total of 8.7 million visitors.The continued recovery in global travel demand, coupled with strategic investment in new accommodation and experiences, collectively strengthens the forecast for a sustained boom in Egypt’s hospitality industry.
This powerful momentum is creating a highly favorable environment for the introduction of new and differentiated hospitality offerings, according to a recent report by real estate research agency JLL.
Cairo’s hospitality sector continued its robust performance in Q2 2025despite ongoing geopolitical tensions in the Middle East. According to STR Global data, occupancy rates rose by 2.8 percentage points year-on-year through June, while the average daily rate (ADR)increased sharply by 14.9 per cent.
“This growth boosted revenue per-available room (RevPAR) by 20.12 per cent annually, highlighting the sector’s resilience and promising growth outlook,” read the JLL report, a copy of which was made available to The Egyptian Gazette.
Cairo is set to benefit significantly from this trend, establishing itself as an increasingly vibrant urban tourism and business destination, according to the report.
“The initial hype around securing well-known international operators to manage serviced apartments and branded residences has started to ease. Instead, developers are increasingly focused on creating their own home-grown hospitality brands, recognising that hospitality today is deeply tied to the overall visitor experience,” it added.
Approximately 860 keys were completed in Q2 2025. This brought Cairo’s total hospitality inventory close to 28,400 keys.Another 970 keys are anticipated to enter the market in the second half of 2025.
