Hil­ton to open 9 ho­tels in Egypt in 5 years with 2,390 rooms

COM­PANY AIMS TO EX­PAND IN UP­PER EGYPT, OTHER GOVER­NORATES: KHNEISSER

The Daily News Egypt - - Business - By Ha­mada Is­mail

Hil­ton World­wide plans to in­clude 2,390 new rooms to its port­fo­lio of the units it man­ages in Egypt through open­ing nine new ho­tels in the com­ing five years, with plans to ex­pand in the Up­per Egypt re­gion and other gover­norates.

Hil­ton vice pres­i­dent of de­vel­op­ment for the Mid­dle East, North Africa, and Turkey, Car­los Khneisser, said that the group has adopted the Egyp­tian mar­ket as an im­por­tant part of its ex­pan­sion plan, as it in­tends to open nine new ho­tels in ad­di­tion to the 17 ho­tels and re­sorts it cur­rently man­ages in Egypt. The new ho­tels will add 2,390 rooms in Cairo, Port Said,Ain Sokhna, and New Dami­etta.

The list of ho­tels un­der con­struc­tion in­cludes the Dou­bletree by Hil­ton Man­groovy in El Gouna with 179 rooms, Hil­ton Cairo Grand Nile in Egypt’s cap­i­tal with 715 rooms, Hil­ton Grand Inn Dami­etta with 120 rooms, Dou­bletree by Hil­ton in Ain Sokhna with 197 rooms, Hil­ton Cairo Nile Maadi with 249 rooms, Hil­ton Grand Inn at Cairo Busi­ness Park with 130 rooms in New Cairo, Hil­ton Giza Pyra­mids with 240 rooms, Hil­ton Ain Sokhna with 180 rooms, and Hil­ton Port Said with 200 rooms.

Khneisser pointed out that the com­pany is look­ing for new op­por­tu­ni­ties and aims to in­crease its pres­ence in the Egyp­tian mar­ket and not to fo­cus on ma­jor cities only, but rather, en­ter new gover­norates through its af­fil­i­ated brands that serve dif­fer­ent seg­ments of guests.

The con­tract for man­ag­ing the Dou­bleTree by Hil­ton Man­groovy in El Gouna is the lat­est Hil­ton con­tract in the Egyp­tian mar­ket.

Khneisser ex­plained that Hil­ton ho­tels in Egypt op­er­ate un­der the Hil­ton and Con­rad brands, adding that the com­pany in­tro­duced new brands un­der its man­age­ment, in­clud­ing Dou­bleTree, Hil­ton Gar­den Inn, and Wal­dorf As­to­ria.

Hil­ton’s port­fo­lio in­cludes 14 brands: Hil­ton Ho­tels & Re­sorts, Wal­dorf As­to­ria Ho­tels & Re­sorts, Con­rad Ho­tels & Re­sorts, Cu­rio Col­lec­tion by Hil­ton, Canopy by Hil­ton, Dou­bleTree by Hil­ton,Tapestry by Hil­ton, Em­bassy Suites by Hil­ton, Hil­ton Gar­den Inn, Hamp­ton Ho­tels by Hil­ton, Tru by Hil­ton, Home­wood Suites by Hil­ton, Home2 Suites by Hil­ton, and Hil­ton Grand Va­ca­tions.

Khneisser said the re­search con­ducted by mar­ket stud­ies com­pa­nies which co­op­er­ate with Hil­ton con­firms the need of the gover­norates and cities of Up­per Egypt for ho­tel ser­vices, but they re­quire lower star lev­els that fit the needs of guests in those areas. He noted that if Hil­ton re­ceives of­fers to man­age ho­tels, it will con­duct its own stud­ies that rely on spe­cific cri­te­ria, in­clud­ing the lo­ca­tion and sur­round­ing sites.

The com­pany signed two ho­tel deals, one in New Dami­etta with Saudi Egyp­tian Com­pany for Re­con­struc­tion and the other in Port Said gover­norate with Tower De­vel­op­ments.

He pointed out that the state has fo­cused its at­ten­tion on the New Ad­min­is­tra­tive Cap­i­tal and New Alamein through its plan to trans­fer ad­min­is­tra­tive ser­vices to the new cities, es­pe­cially uni­ver­si­ties and busi­ness com­mu­ni­ties, which would in turn cre­ate a large de­mand for ho­tels.

He noted that the com­pany achieved its tar­get for the cur­rent year with the open­ing of Hil­ton Cairo He­liopo­lis. He said the first pro­ject to be opened next year will be Hil­ton Maadi, which is owned by the Saudi Egyp­tian Com­pany for Re­con­struc­tion and fea­tures 715 rooms.

Hil­ton signed two con­tracts with Gulf Egypt For Ho­tels & Tourism for the man­age­ment and op­er­a­tion of Hil­ton Cairo He­liopo­lis and He­liopolisTow­ers Ho­tel un­der two sep­a­rate brands.

Hil­ton Cairo He­liopo­lis, which in­cludes 593 rooms, opened to guests last month, along with He­liopo­lis Tow­ers Ho­tel, which houses 247 lux­ury rooms, planned to be un­der the Wal­dorf As­to­ria brand.

Khneisser said that oc­cu­pancy rates are ris­ing an­nu­ally, in gen­eral, in ho­tels in Egypt by 11-13%, which he de­scribed as a good rate, with ex­pec­ta­tions for it to rise in the com­ing years.

He ex­plained that the com­pany prefers to par­tic­i­pate in the de­sign of ho­tels from the be­gin­ning for them to be com­pli­ant with their re­quire­ments ac­cord­ing to each brand, but also con­tract on ex­ist­ing ho­tels if they are sub­ject to ad­just­ment to com­ply with their needs, as hap­pened with the Hil­ton Cairo He­liopo­lis.

More­over, he stressed that the com­pany has not bro­ken any of its con­tracts since the start of its ac­tiv­ity in the Egyp­tian mar­ket 50 years ago, but some con­tracts ex­pired and were not re­newed, due to own­ers not com­ply­ing with Hil­ton’s terms and re­de­vel­op­ment goals in line with the com­pany’s re­quire­ments to en­sure the re­quired ser­vice is pro­vided.

He pointed to the de­cline due to the chal­lenges faced by the Egyp­tian mar­ket in re­cent years and that the com­pany main­tained its pres­ence in Egypt post-2011, which high­lights its strength.

He stressed that the mar­ket is turn­ing to sta­bil­ity, es­pe­cially with the re­turn of tourism from sev­eral coun­tries, which raises ex­pec­ta­tions of ris­ing oc­cu­pancy rates. He noted that the last four con­tracts that the com­pany signed in the Mid­dle East were for Egypt.

Hil­ton is one of the world’s lead­ing hospi­tal­ity com­pa­nies,with over 5,200 ho­tels and 856,000 rooms in 105 coun­tries and re­gions.

THE MAR­KET IS TURN­ING TO STA­BIL­ITY, ES­PE­CIALLY WITH THE RE­TURN OF TOURISM FROM SEV­ERAL COUN­TRIES, WHICH RAISES EX­PEC­TA­TIONS OF RIS­ING OC­CU­PANCY RATES

THE STATE HAS FO­CUSED ITS AT­TEN­TION ON THE NEW AD­MIN­IS­TRA­TIVE CAP­I­TAL AND NEW ALAMEIN THROUGH

ITS PLAN TO TRANS­FER AD­MIN­IS­TRA­TIVE SER­VICES TO THE NEW CITIES

Hil­ton vice pres­i­dent of de­vel­op­ment for the Mid­dle East, North Africa, and Turkey, Car­los Khneisser

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