Sharm el Sheikh
Sharm-el-Sheikh has not had the same fortunes as Cairo. Occupancy levels plunged in Sharm El Sheikh following the crash of a Russian civilian aeroplane in early November 2015. A subsequent ban on travel and cancellation of flights to the region from Russia and various European countries severely impacted performance in the Rea Sea destination. Despite challenging trading, values improved slightly, although Sharm remains in last place on the HVI.
Sharm-el-Sheikh's occupancy is significantly impacted by the violent events that happened within 2015/16. The occupancy rate dropped below 50%, leading the values down by 27.3%. However, whilst this massive drop in values did no good for the hotel businesses, it represented an attractive investment opportunity. Investors can buy at a low price and gain from the cash on sale rather than from the pure operation of the hotel.