Kuwait’s Safir Hotels & Resorts Signs Management Agreement for New Hotel on Egypt’s North Coast, Set to Open in 2029

Agreement with Apache and Toledo Real Estate Development strengthens the group’s presence in Egypt, with additional hotel openings planned in Sohag, Kuwait, and Erbil in 2027.

Kuwait-based Safir Hotels & Resorts, a subsidiary of Kuwait Hotels Company, has signed a management and operating agreement with Apache and Toledo Real Estate Development for the new Safir Mercy North Coast Hotel in Egypt, further strengthening its presence in the country’s hospitality sector.

Located at kilometer 76 along Egypt’s North Coast, the hotel is scheduled to begin construction in early 2027, with operations expected to commence in early 2029.

The agreement builds on Safir’s established presence in Egypt, which represents one of its key markets in terms of hotel portfolio diversity.

The company currently manages four hotels and resorts in the country, including Safir Cairo, Safir Sharm Waterfalls, Safir Dahab, and Safir Marsa Matrouh.

Safir is also preparing to open Safir Sohag in 2027 as part of its strategy to expand its operational portfolio across Egyptian destinations.

Abdulrahman Al-Musallam, a member of the company’s Board of Directors, highlighted the North Coast’s growing importance as a promising regional tourism destination.

He indicated that the expansion aims to deliver a hospitality experience combining international standards with authentic Arabian character, while enhancing investment returns for property owners and development partners.

Beyond Egypt, Safir’s expansion plans include new hotel openings in Kuwait and Iraq during 2027, including Safir Sea View and Safir Erbil.

The company is also exploring additional opportunities in Saudi Arabia and Oman as part of its broader regional growth strategy.

Established in 1993, Safir Hotels & Resorts manages hospitality properties across several Arab markets, focusing on hotel operations, management services, and performance optimization.

The agreement reflects growing interest among Arab hospitality operators in expanding along Egypt’s North Coast through hotel management contracts with real estate developers rather than direct property ownership.

This business model enables developers to benefit from established hospitality brands, operational expertise, and distribution networks, while allowing hotel management companies to expand their portfolios without bearing the full capital costs of property development.

From a tourism investment perspective, the project could contribute additional professionally managed accommodation capacity to Egypt’s North Coast, supporting the destination’s efforts to diversify its hospitality offering.

However, its long-term economic contribution will depend on sustainable occupancy levels, the ability to attract visitors beyond the peak summer season, and the destination’s broader tourism infrastructure.

The project's investment value and financial terms of the management agreement have not been disclosed, making it premature to assess the potential financial contribution to Safir’s portfolio.