Helping shape Egypt’s future

For the last three decades, WATG and Wimberly Interiors have played a pivotal role in shaping Egypt’s hospitality landscape. From our earliest projects along the Red Sea – in iconic resort destinations like Sharm El Sheikh and Hurghada – to our more recent work along the Mediterranean North Coast, we have had the privilege of contributing to some of Egypt’s most prestigious projects.

More recently, we announced our role in the master planning, landscaping, and architectural vision for Modon’s ambitious new city at Ras Al Hekma on the North Coast, while in Cairo, our involvement in landmark mixed-use developments such as Zed West and Zed East – both currently under construction – further underscores our commitment to shaping the country’s architectural future.

Egypt’s tourism sector has made an extraordinary recovery in post-COVID travel. Far surpassing rival tourist destinations globally in its rebounding and surpassing of 2019 tourism indicators. Tourism is a cornerstone of the Egyptian economy, accounting for nearly 8% totalling USD 32.2 BN and directly supporting 2.67 M jobs % of the nation’s GDP (according to World Travel and Tourism Council- 2024). With 16 million annual visitors and government ambitions to increase that figure to expected to reach 30 million by 2028, the demand for high-end hospitality is surging, particularly in emerging destinations along the North Coast. Of equal importance is the internal tourism, driven by affluent domestic travellers, which is fuelling the need for luxury brands within newly developed communities.

In fact, domestic visitor spending saw a 9% year-on-year increase, surpassing EGP 328.5 billion, while spending by international visitors surged by 38.5% to reach EGP 470.4 billion. (World Travel & Tourism Counsil- Egypt 2024)

The number of upscale and luxury hotels in Egypt has increased significantly, of the total rooms under construction 75% are classified as upscale, upper upscale or luxury according to CoStar. Particularly in Cairo and coastal regions, as international hotel chains expand their footprint. In addition, developments on the Red Sea and North Coast have witnessed a 15% growth in high-end hospitality projects over the past five years.

The Red Sea has long been a premier international beach destination, however, attracting visitors year-round. The top three source markets for tourism to Egypt are Russia (12%), Saudi Arabia (11&) and Germany (8%), with a notable uptick since 2019 of Russian visitors. (World Travel & Tourism Counsil- Egypt 2024) Sharm El Sheikh, Hurghada, and El Gouna are well-known hotspots for global tourism, and we’ve played a key role in designing and developing luxury five-star hotels in these locations, supporting their ability to remain competitive in a global travel market.

Cairo is also one of Egypt’s biggest tourism centres, and it continues to thrive as a destination steeped in history, drawing travellers that are eager to explore its ancient treasures. Here, we’re seeing an increase in international hospitality brands trying to establish a stronger foothold in the city, while large-scale projects such as Zed West & Zed East emphasise a desire for more mixed-use urban development.

Today, one of the fastest-growing markets is the North Coast. Traditionally a second-home destination for residents, with very few foreign visitors, the region has recently been witnessing a transformation. Over $10bn has recently been invested in new luxury projects here, including major masterplans such as Ras Al Hekma.

With a number of high-end communities being formed around the introduction of high-end hotels, these developments across Egypt are not just redefining the local hospitality landscape, but they’re setting a new standard for quality and exclusivity.

Egypt is facing a fast-growing population (rising by 20 million in the past decade to reach 116 million – and expected to reach 150 million by 2050) and an economy that is projected to grow by approximately 4% in 2025, with construction being one of the fastest growing sectors (anticipated to increase by 7.6% between 2025 and 2028). On this basis, it’s clear that one of the strongest investment opportunities here is real estate – including the creation of new mixed-use communities.

Mixed use development is highly competitive and the search for luxury developments naturally allows us to offer pivotal hospitality expertise. From our experience, close collaboration with clients and local partners enables us to align with the evolving needs of each community, crafting destinations that are both functional and aspirational.

It’s also important to note that historically, new communities in Egypt functioned as dormitory towns, primarily residential in nature. However, there has been a shift toward integrated urbanism which has led to the rise of vibrant, multi-faceted environments where luxury hotels, entertainment hubs, and commercial spaces coexist. This transformation enhances both the liveability and economic sustainability, fostering more animated and sustainable environments.

Each one of these new neighbourhoods combines living, leisure and work into one, which has an additional benefit in the reduction of commuting traffic. This is also helped by the development of the elevated metro across the city, further enhancing the connectivity and integration between the spaces.

While Egypt looks to enhance its tourism numbers, the country is also dealing with a fast-growing population and a demand for a whole new generation of communities in Cairo and the North Coast. These proposed master plans are reflective of a huge appetite for a hospitality approach and luxury living. We are seeing a matched effort to meet this demand. CoStar notes 61 luxury and upper upscale projects (16,200 rooms) in the pipeline. With activity concentrated in Cairo, New Administrative City, Ras El Hekma and Sharm El Sheikh.

Egypt also has a very cosmopolitan Mediterranean outlook which is very in tune with global hospitality trends. Due to its favourable climate, there is an emphasis on creating spaces that accommodate an outdoor lifestyle. With outdoor living so central to its social culture, developments are naturally oriented to maximize open-air experiences, particularly along the North Coast, making the most of the breeze coming off the Mediterranean Sea. Egyptians really value lively communal spaces, and our designs must reflect this innate sense of sociability.

In terms of actual developments in the pipeline, we understand that plans have recently been announced to build six new hotels in Egypt at a cost of $215 million, with two on the North Coast and four along the Red Sea, leveraging government loan schemes to boost tourism infrastructure.

We are also seeing brands aggressively expand their presence across the country. For example, Hilton has plans to triple its portfolio in Egypt, with plans to open 25 hotels across the country. If these plans continue they are expected to be at nearly 40 properties in the coming years.

Sustainability is key going forward, with green building certifications and eco-friendly designs gaining traction, as well as a 30% rise in sustainable hotel projects.

Each project we work on in this region presents its own set of challenges, whether it’s navigating complex briefs or assessing a wide variety of topographies. To overcome these, we work very closely with the client as if they were another member of our design team, leveraging their experience and intimate knowledge of the market. No one brief is the same, but our deep-rooted experience in the Egyptian market enables us to bridge information gaps, anticipate project timelines, and adapt to shifting demands.

Egypt is also keenly focused on attracting discerning tourists from all over the globe that come to expect a very high standard of hospitality design. We are actively helping this country to achieve this vision, by taking the time to understand it’s incredible heritage while also bringing with us the latest trends from the international luxury market. At WATG we are investing in tracking and studying the future of hospitality to keep our partners and clients informed. Our WATG Research group regularly tracks and reports of shifting hospitality market conditions, trends and developments to stay ahead of change.

The WATG and Wimberly Interiors’ journey through Egypt has been one of discovery, innovation, and deep cultural appreciation. Whether designing luxury resorts on the Red Sea, pioneering new hospitality-driven communities on the North Coast, or crafting world-class hotels in Cairo, we remain dedicated to elevating Egypt’s ever-evolving built environment. Amidst our work, we’ve also cherished moments of inspiration, such as an evening spent sailing the Nile, where the timeless beauty of Egypt’s landscape reaffirms why we do what we do.

Sources:

+ UN Tourism Global and regional tourism performance.
+ Tourism GDP Economic contribution of Tourism and beyond: Data on the economic contribution of Tourism.
+ Hilton Brand Expansion Hilton on track to triple its portfolio in Egypt with plans to open 25 hotels across the country – Hotel projects – Luxury hospitality news.