Orascom Development Egypt achieves 19.5 billion pounds in real estate sales during 2023
Orascom Development Egypt (ODE) is pleased to announce its preliminary real estate and hotel KPIs for FY 2023.
Real Estate FY 2023 KPIs
ODE has surpassed all its previous records in real estate sales, with a surge of nearly EGP 19.5 billion in FY 2023, up by a momentous 74.9% (FY 2022: EGP 11.1 billion). Additionally, the Q4 sales in 2023 reached EGP 6.4 billion, exhibiting strong growth of 65.9% compared to Q4 2022. It is worth noting that international sales contributed a significant 37% to total real estate sales in 2023.
Omar El Hamamsy, Group CEO of Orascom Development, commented:
“The unprecedented sales results achieved in 2023 are a testament to our market leadership and steadfast commitment to growth. This achievement is a testament to the company’s pricing and planning strategies, including higher average selling prices and demand for units across all destinations. Our brand equity, customer excellence, and the quality of life we provide in our communities are the cornerstones of our success. We swiftly adapted our plans and accelerated construction to mitigate the impact of the inflationary environment. Despite geopolitical tension and economic pressure, we look forward to growing our leadership position in 2024″.
A leap in hospitality portfolio during FY 2023 despite the conflict in the region
During the fiscal year ending 2023, the hotels in El Gouna increased occupancy rates, rising from 70% to 72%. Meanwhile, Taba Heights saw an increase in occupancy rates from 29% in FY 2022 to 42% in FY 2023, despite being affected by the conflict in Gaza that began in October 2023. Accordingly, the short-term strategy for Taba Heights hotels was to limit operational capacity and reduce cash burn rates while ensuring the destination’s readiness to operate when tourism eventually resumes. During FY 2023, foreign nationals constituted nearly 80% of the total occupancy at ODE’s hotels.
Omar El Hamamsy, Group CEO of Orascom Development, added: “Orascom Development achieved remarkable business growth across hotels in FY 2023, despite being affected by Gaza in Q4 2023. The results exceeded our expectations, reflecting the agile response and plans we operate in our hotels. Our resilient business model continued to drive powerful and robust results, primarily fueled by strong average daily rates, ongoing leisure demand, and increased occupancy rates. With global travel poised for continued robust growth, our strategic focus is on delivering exceptional experiences for our guests and retaining their loyalty. The increase in key performance indicators (KPIs) reflects our brand’s attractiveness, our team’s dedication, and the growing demand for travel and adventure among our guests”.
