British developer bets $670 million on Egypt tourism push with Sharm El Sheikh projects

The First Group is ramping up its expansion in Egyptian tourism with a $670 million investment to develop more than 3,200 hotel units in Sharm El Sheikh, reinforcing the country’s position as a key global travel destination.

Sharm El Sheikh hotel pipeline grows

The British hospitality developer has entered a long-term partnership with Pulse Developments to deliver three major projects across Nabq, Naama Bay, and El Montazah. The initiative ranks among the largest recent hospitality investments in Egypt and reflects rising international confidence in the country’s tourism sector.

The development pipeline will be rolled out over the next four years, beginning with Sharm Oasis in Nabq, a 470-unit project backed by more than $100 million and scheduled for completion within 18 months. A second development in Naama Bay, expected to be unveiled soon, will add more than 300 hotel rooms with an estimated investment of $65 million to $70 million.

The largest component of the expansion will be located in El Montazah, where at least 2,500 hotel units will be developed with capital exceeding $500 million.

Inside The First Group strategy
Rather than a single standalone project, the partnership is structured as a scalable platform to develop, operate, and market multiple hospitality assets under international brands, creating a long-term pipeline of hotel investments in Egypt.

The First Group already manages a hospitality portfolio valued at over $5 billion across 20 properties and collaborates with global operators including Marriott International, Millennium Hotels and Resorts, and Wyndham Hotels & Resorts.

Why investors are backing Egypt

The company plans to sustain momentum by launching approximately two new projects annually across Egypt and the UAE, while Pulse Developments continues to expand its land holdings, including sites near the Grand Egyptian Museum.

Beyond expanding room capacity, the investment is expected to strengthen Sharm El Sheikh’s position as a priority destination for global hospitality players while supporting Egypt’s broader strategy to attract foreign capital into tourism.

The projects are also set to generate downstream opportunities across construction, hospitality operations, and tourism services, as investors monitor delivery timelines and the potential for further expansion in Egypt’s fast-growing travel market.