Orascom Development Egypt tourism

Orascom Development Egypt (ORHD), a subsidiary of Orascom Development Holding (ODH), is emerging as a top performer in Egypt’s real estate and hospitality sectors, fueled by tourism expansion and rising Red Sea land values.

This comes as the company’s hospitality-focused portfolio positions to outperform peers in a residential market facing affordability and supply challenges through 2026.

Red Sea momentum drives value
A major catalyst is the revaluation of Red Sea land following Emaar Misr’s Marassi Red Sea project. HC Brokerage estimates an implied net present value of EGP 3,765 ($80.49) per square meter for ORHD’s approximately 15 million square meters of undeveloped land in El Gouna. This creates significant upside potential for the company’s hospitality-led developments.

Foreign demand strengthens sales
ORHD continues to attract international buyers. In H1 2025, foreign buyers accounted for 49% of El Gouna sales and 33% of O West sales.

This trend underscores the appeal of Egypt’s tourism destinations to overseas investors, providing a buffer against domestic housing market headwinds.

Hospitality portfolio secures growth
It’s projection of 20% increase in hospitality revenue over the next four years, is driven by higher room rates, improving occupancy, and stronger operations. Hospitality EBITDA is expected to grow at a compound annual rate of 26%, contributing roughly 22% of consolidated revenue by 2029.

Government tourism initiatives provide tailwinds
The official opening of the Grand Egyptian Museum and other tourism initiatives enhance Egypt’s appeal as a global destination. ORHD’s diversified, hospitality-heavy portfolio is well-positioned to capture this growth, leveraging both local and international demand.

With tourism-led growth set to accelerate, ORHD’s strong exposure to premium destinations, resilient hospitality business model, and Red Sea land revaluation support an optimistic medium-term outlook. It is expected that the company will outperform residential peers, delivering value to shareholders through strategic tourism-focused investments.