Accor is accelerating its expansion in Egypt’s fast-growing luxury hospitality market with a $306 million partnership alongside Margins Developments to develop a new Novotel hotel and branded residences in New Cairo.

The development, located in the rapidly expanding Sixth Settlement district near the New Administrative Capital, signals growing investor confidence in Egypt’s premium hospitality and branded residential sectors.

Mixed-use destination targets premium demand

The project forms part of the LUSAIL Residence development and will combine a 120-room Novotel hotel with more than 450 branded residential units across approximately 30 feddans of land.

With a built-up area exceeding 266,000 square metres and total investments surpassing EGP15 billion ($306 million), the scheme ranks among the largest hospitality-linked residential developments currently underway in Greater Cairo.

Operations and property management for the branded residences will be handled by DEX Squared Hospitality, reflecting increasing demand among investors for professionally managed residential assets tied to international hotel brands.

Accor strengthens Egypt expansion strategy

The agreement further consolidates Accor’s position in one of Africa’s fastest-growing tourism and hospitality markets.

The French hotel operator has maintained a presence in Egypt for more than 45 years and has already signed projects representing more than 1,300 hotel keys across the country since the beginning of 2026 as part of its aggressive regional growth strategy.

Raki Phillips described Egypt as a strategic growth market, citing strong demand fundamentals and rising interest in high-potential urban destinations.

Branded residences drive new investment trend

For Margins Developments, the partnership marks its formal entry into the hospitality industry and expands its mixed-use development strategy.

Mohamed El Aassar, Margins Developments Chairperson said the company sees branded residences evolving into a preferred asset class for investors seeking recurring income and premium lifestyle offerings.

Chief Executive Officer Ashraf Shaheen added that integrating hotel accommodation with branded residences creates a fully serviced ecosystem designed for both residents and international visitors.

As Egypt continues attracting record tourism investment and international hotel brands expand their footprint, New Cairo is rapidly positioning itself as one of the country’s most important luxury hospitality growth corridors.