The Egyptian General Company for Tourism & Hotels (EGOTH) lost EGP 43m in three months, following the downing of the Russian airliner in October, said company chairman Samir Hassan.
Hassan said that the occupancy some of the company’s hotels fell to as low as 5%, especially in Dahab in South Sinai over the past three months. He, however, added that rates rose again at the end of January, particularly in the company’s hotels in Cairo.
EGOTH has more than 10 hotels distributed in Cairo, Giza, Luxor, Aswan, Alexandria, and South Sinai.
Occupancy in the company’s Cairo hotels, such as the Marriott, was more than 60%. Expectations are that this will increase soon thanks to the flow of Arab tourism to Cairo.
Hassan hopes that current circumstances will not affect the company’s investment plans, especially as the company put about EGP 404m of profits in reserve for investment plans in 2015/2016.
EGOTH is less likely to achieve targeted profits, estimated at EGP 240m, versus EGP 172m achieved last year, according to Hassan.
In the last fiscal year, EGOTH announced its plan to develop a range of assets and lands in different areas, including the Shepherd Hotel which overlooks the Nile in Cairo, through self-financing.
Hassan said that the company will study all investment opportunities for the company’s assets. He noted that the cabinet has approved the development of the Intercontinental Hotel near the old Opera in Downtown Cairo.
EGOTH has finalised its feasibility studies for the project, according to its Chairman. Hassan said that the project is estimated to cost more than EGP 1bn to renovate the hotel and maintain its distinctive architectural appeal.