Egypt signed a $265 million memorandum of understanding (MoU) on Tuesday to develop new hotel rooms and branded residential units in major tourist destinations, Prime Minister Mostafa Madbouly announced.
The MoU was signed by ADD Properties, a subsidiary of Sami Saad Holding Group, and Hyatt Hotels Corporation, in the presence of Minister of Tourism and Antiquities Sherif Fathy.
Madbouly described the signing as a supportive step toward establishing Egypt as a premier global investment and tourism hub. He stressed the importance of strengthening partnerships between local and international private sectors to achieve comprehensive development in hospitality and real estate.
Minister Fathy said the MoU reflects confidence of major global institutions in Egypt's economy and the potential of its rapidly growing tourism sector. "The cooperation combines international standards with Egypt’s unique character and contributes to offering innovative hospitality experiences that align with the expectations of tourists worldwide," Fathy said.
The investment plan is backed by an international financial institution and aligns with joint efforts to strengthen Egypt’s hospitality sector and support economic growth through sustainable projects.
ADD Properties previously reintroduced the Hyatt brand to Egypt in 2022 with the opening of Hyatt Regency Cairo West, offering 250 rooms and suites. The hotel received global excellence awards, restoring Hyatt’s confidence in expanding within Egypt. More recently, ADD Real Estate opened Hyatt Centric Cairo West, featuring 304 rooms and suites. That property is the first art-themed hotel in Egypt and Africa, with contributions from 11 Egyptian artists.
Tourist arrivals to Egypt increased by 25 percent during the first quarter of 2025 compared to the same period in 2024, according to the Egyptian Cabinet Media Centre. The country welcomed 15.8 million tourists in 2024, a rise of over 21 percent compared to pre-pandemic levels.
In December 2023, the government launched a EGP 50 billion initiative to provide financial incentives for companies to expand hotel room capacity, targeting Greater Cairo, Luxor, Aswan, the Red Sea, South Sinai, and the North Coast. According to experts, every 15,000 additional hotel rooms can generate approximately EGP 1-2 billion in value-added tax and an estimated EGP 2 billion in commercial tax and industrial profits.
Egypt plans to double foreign visitor numbers to 30 million by 2028 and aims to add 18,000 hotel rooms by the end of 2025. Current capacity is approximately 230,000 rooms, and the government targets development of over 200,000 additional rooms within the next two to three years.
Why it matters
The MoU signals continued private-sector confidence in Egypt's tourism growth trajectory, which has already seen record arrivals in 2024 and strong momentum in early 2025. The involvement of an international financial institution suggests the project may serve as a template for future public-private partnerships in hospitality infrastructure. For travel buyers and investors, the planned room expansion — particularly in branded, internationally managed properties — could alleviate capacity constraints in key destinations and support Egypt's ambitious target of 30 million annual visitors by 2028. The success of earlier Hyatt properties in Cairo provides a precedent for replication in other tourist hubs.
