Minister of Public Sector Affairs Khaled Badawy directed the Holding Company for Tourism and Hotels (HOTAC) to expand in three- and four-star hotels through partnerships with private sector investors, and to work on an inventory of the distinct sites across the governorates of the republic with the possibility of exploiting some real estate assets owned by sister companies in the sector.
During his meeting with the Chairperson of HOTAC Mervat Ali Hataba, the minister was updated on the sector’s companies’ performance and the situation of projects’ development and discussing future projects.
The minister stressed the need to resort to the most distinguished hotel management companies in the world for the management of historic hotels owned by the HOTAC and its subsidiaries or those located in strategic and unique locations, noting that these hotels represent a tourist destination for many, both inside and outside Egypt.
Notably, the minister explained that such procedures would help in maintaining the distinction of these hotels and ensuring the efficiency of services provided to guests.
Badawy also directed the management of the HOTAC to develop a plan to expand investment partnerships to develop internal trading companies in light of recent decisions by the general assemblies of these companies by merging them into two companies. In addition, he asked them to seek integration between their subsidiaries and cooperation in providing services to improve economies of scale.
In Q1 2018, hotel room supply grew by 900 keys compared to Q1 2017, with the growth occurring in the Cairo market, according to Colliers International’s MENA Quarterly Review Q1 2018 report.
The report cites Cairo as the sole driver of growth in Egypt’s hotel supply with the opening of the Sheraton Hotel Cairo and Casino and the Hilton Cairo Heliopolis in Q3 2017 and Q1 2018 respectively. The openings contributed to the 5% growth in supply for Cairo seen in Q1 2018 over the previous year.
Moreover, the Colliers report said that the current period of stability has also encouraged Russia and Germany, two key source markets, to reopen direct flights to Cairo and Sharm El-Sheikh. If this trend continues, it is expected to further increase the demand on the country’s prominent tourist destinations.
The HOTAC is an Egyptian joint stock holding company established in accordance with Public Enterprises Law 203 of 1991.
The purpose of the HOTAC, according to its statute, is to take part in the development of the national economy in the fields of tourism, hotels, sound and light shows, and other complementary and related economic activities undertaken by its affiliated companies.