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Dubai - Success Stories
The Expansion of Greater Cairo
The Project
The developer, Barwa International, had acquired an
8.4 million m² plot in NCC and was interested in learning the sustainable
number of hotel rooms and hotels for the proposed development as well as their
profitability. Furthermore, we were asked to examine the type and rating of
hotel that should be developed. The task included developing an overall sustainable
and integrated mixed-use development in the heart of NCC.
KEY FEATURES OF THE ENGAGEMENT
- Reviewed market for hotel accommodations in Cairo.
- Commented on supply and demand dynamics for Cairo market with large focus on upcoming developments in NCC.
- Performed sustainability study to determine ideal number of rooms.
- Recommended positioning and number of hotels for development.
- Provided indicative segmentation analysis and P+L projections for proposed hotels.
- Provided maximum supportable investment analysis.
- Provided return on investment analysis, proving development to financially viable.
The Results
In order to perform this extensive engagement and
advise on the most viable hotel concept we have performed a sustainability
analysis deriving the optimal number of rooms for the proposed development.
Following this, we assessed the ideal number of hotels and types of hotels
for the development, and decided it would be ideal for the development to
offer guests the choice between three hotels, a 400-room five-star hotel,
a 300-room four star retail hotel and a 250-room three-star hotel. We also
recommended on the facilities of the hotels and as such a major component
of the development we suggested should be the inclusion of an exhibition centre,
which would include ample conference and meeting space to cater to the ever-growing
MICE demand in Cairo. Through a pricing and positioning analysis we were able
to compute the ideal occupancy and average rates for each hotel and consequently
our analysis concluded with the provision of indicative profit and loss projections
for each hotel component of the development as well as an aggregate return
on investment analysis which proved the development to be financially viable.
Overall the project was a great success. We presented our findings to the company’s executives and they were thoroughly pleased issuing the statement:
“I have always been using HVS' services in the GCC/Middle East for their wide range of services and depth of knowledge in this market place. I would always benefit from their expertise on any future assignments.”
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