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Egyptian developer MG Developments has launched Valo Hospitality, a dedicated hospitality management platform, as part of a five-year strategy to invest around 2 billion Egyptian pounds ($40 million) in the hospitality sector, the company’s chairman said.
Mohamed Motawea told Zawya Projects that the move reflects a strategic shift in the group’s business model, positioning hospitality management as a core pillar alongside real estate development to protect asset value, diversify revenues and reduce exposure to tourism seasonality.
He said VALO Hospitality will not be limited to MG’s own assets but will also target management contracts outside the group’s developments.
Six hotels, 600 keys
Through Valo Hospitality, MG Developments plans to develop and operate six hotels with a combined inventory of more than 600 rooms and suites.
Motawea said that a dedicated hospitality management entity will standardise leasing and operational frameworks under unified professional standards to enhance service quality, strengthen brand positioning and improve guest experience.
In Ain Sokhna, the La Cabana Beachfront Hotel within the Blue Blue Sokhna Resort is currently in soft opening. A second hotel at the resort has been structurally completed and is undergoing interior finishing, with a launch targeted by end-2027, while a five-star hotel is under construction and scheduled to open in 2028. The resort also includes a beachfront cabin zone featuring a dog-friendly beach, 120 wooden cabins and a seaside restaurant complex catering to leisure, family and business guests.
At the Solara project, two hotels with 260 rooms are under construction and expected to open in 2029. One of the properties is in discussions with a major international hotel brand for third-party management under global operating standards.
Motawea said the company’s hospitality strategy in Ain Sokhna targets multiple segments, including leisure and family tourism, short- and medium-term stays, business travellers and the MICE segment. This will be supported by four meeting and conference halls across New Cairo and Ain Sokhna, aimed at lifting occupancy and smoothing seasonal demand.
MG Developments’ portfolio includes Blue Blue Sokhna Resort, spanning 120,000 square metres across six phases, as well as mixed-use and commercial projects such as The Mark, ProMark, HQ (Headquarters Business) in the New Administrative Capital, and Premium Business in New Cairo.
(1 US Dollar = 50.09 Egyptian Pounds)
(Reporting by Eman Hamed; Editing by Anoop Menon)
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