- Egyptian developer records profits amid hotel segment growth
- Hotel occupancy levels in Cairo increased by 13 per cent in the past three months
Egypts Orascom Hotels and Development (OHD) has reported net profits of E£154.7 in the first six month of 2015 compared with losses of up to E£34.4m in the same period last year.
The companys revenues stood at E£937.2m in the first half of this year, a 25 per cent year-on-year increase from E£750.2m in the same period in 2014.
The profit increase was attributed to improvements to the companys hotel division, according to a company statement on the Egyptian Stock Exchange.
The company revealed that its real estate division sales witnessed growth in the first half of this year reaching E£503.7m, rising from the E£153.3m recorded in the same period in 2014.
OHDs statement also went on to say that the companys plan for 2015-16 includes the completion of the Ancient Sands Hotel in the red sea resort of El-Gouna as well as a hotel in al-Fayoum by the first quarter of 2016.
Meanwhile it is also understood that the company will exploit its land bank in the Red Sea area. Negotiations are underway with sub-contractors to develop a 100,000 square metre site.
An increase in leisure and corporate demand have resulted in greater occupancy in Cairo in the first six months of this year, compared with the same period last year. Occupancy levels rose 13 per cent in the past three months, according to a report published by US-based real estate firm Colliers.
The Eid break also helped Egypts Red Sea resort of Hurghada record a 1 per cent increase in occupancy as the countrys tourism continues to recover following four years of instability.