Hotels in Egypt: Orascom places its stake on the budget segment

New hotels in Egypt, despite the crisis, remain one of the priorities in the development of hotel industry in North Africa. New plans for construction of middle class hotels in the Egyptian capital Cairo prove that. The company Orascom Development Holding, headquartered in Switzerland, intends to open new hotels near Cairo. The main target audience of hotels will be businessmen, seeking to reduce travel expenses.

New hotels in Cairo by Orascom will be located on the western and eastern outskirts of the capital of Egypt. Due to the remote location of the hotels the company will be able to significantly reduce the room price. It is expected that construction of hotels will not take more than one and a half or two years from the date of the final selection of the site for new hotels.

The cost of the new project by Orascom is estimated at approximately 70 million dollars. New hotels in Egypt, despite its budget orientation, will have a number of attributes of business hotels, including high-quality restaurants, rooms for meetings and private swimming pools.

According to the creators of the project in the near future the budget sector promises to become the fastest-growing part of the hotel market of Egypt. The demand for inexpensive hotels near the industrial areas in Cairo exceeds supply today. Business travelers seeking to cut down expenses have to choose - between luxury hotels in the center or hotels, which are more suitable for students and backpackers.

To date, the main line of activity of Orascom remains construction and management of hotel complexes on the Red Sea. In addition, hotels of the company are represented in such countries as Jordan, Turkey, UAE, Morocco, Switzerland and United Kingdom. Besides that, the company participates in the construction of residences at many resorts in Egypt. Among the significant projects of the company in recent years – development of El Gouna resort, located 20 kilometers north of Hurghada. The niche of budget hotels is still relatively new for Orascom.