EGP 2bn investment – 6 hotels – 600+ rooms – 5-year plan.
MG Developments has officially launched VALO Hospitality, its dedicated hotel management arm, as part of an expansion strategy aimed at strengthening its position in Egypt’s real estate and hospitality market.
The launch of MG Developments VALO Hospitality marks a strategic shift in the company’s business model, positioning hospitality management as a core growth driver rather than a complementary activity to real estate development.
EGP 2bn Hospitality Expansion Strategy
Chairman Mohamed Motawea confirmed that MG Developments will invest approximately EGP 2bn over five years through VALO Hospitality to develop and operate six hotels across key destinations including Ain Sokhna and New Cairo.
The strategy aims to:
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Enhance recurring income streams
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Maximize asset value
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Reduce seasonality risks in tourism-driven projects
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Strengthen long-term investor returns
According to Motawea, integrating real estate development with professional hospitality management ensures higher operational efficiency and sustainable profitability.
6 Hotels, 600+ Rooms Across Strategic Locations
Under MG Developments VALO Hospitality, the company plans to deliver more than 600 rooms and suites across six hotels.
In Ain Sokhna, the hospitality pipeline includes:
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La Cabana Beachfront Hotel (soft opening phase)
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A second hotel scheduled for launch by end-2027
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A five-star hotel under construction, targeted for 2028
At the Solara Project, two full-service hotels totaling 260 rooms are under development, with expected openings in 2029. Negotiations are ongoing with a major international hotel brand to manage one of the properties under global standards.
MICE and Multi-Segment Tourism Strategy
MG Developments VALO Hospitality is targeting multiple demand segments, including:
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Leisure and family tourism
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Business travelers
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Short- and medium-term stays
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MICE tourism (Meetings, Incentives, Conferences, and Exhibitions)
