Ahmed Kamel – Egypt Daily News
Travco Group is preparing a major expansion of its hospitality business, with more than $500 million earmarked for hotel projects in Europe, North Africa and Egypt by 2027.
The Egyptian tourism company plans to add around 1,200 rooms in Morocco, Tunisia, Turkey, Greece and Spain while completing the redevelopment of eight hotels in its domestic portfolio. The programme is designed to increase Travco’s room inventory, strengthen its international brands and take advantage of continued growth in regional tourism.
Hamed El Chiaty, Travco’s chairman, said the company would finance the investment through an equal combination of internal funds and bank loans. The proposed structure would allow the group to fund half of the expansion from its own resources while borrowing the rest from financial institutions.
The company has not released a detailed breakdown of the planned spending or identified the individual properties that will receive investment. It has also not disclosed the amount allocated to the eight Egyptian hotels scheduled for redevelopment.
Travco’s overseas strategy reflects an effort to reduce its reliance on the Egyptian market while expanding its presence in destinations that attract large numbers of international visitors. The five countries selected for the new room capacity include established tourism economies as well as markets where demand for resort and leisure accommodation continues to develop.
In North Africa, Morocco and Tunisia offer access to the Mediterranean and growing demand from European holidaymakers. Turkey and Greece are major destinations for beach tourism, city breaks and cultural travel, while Spain remains one of the world’s most important tourism markets.
Rather than simply adding rooms, Travco intends to use the expansion to increase the visibility of its own hotel brands. The group expects the new properties to be operated under brands including Jaz and Steigenberger, giving it greater control over service standards, marketing and day-to-day management.
Travco already operates a broad portfolio across several markets. Its international business includes Iberotel and Sol Y Mar properties in Spain, as well as hotels operating under the Steigenberger name. Through Travco Holidays, the company also has operations in Turkey and Greece.
In Tunisia, the group manages the Jaz Tour Khalef resort and hotel in Sousse. The company’s existing regional network provides a foundation for further expansion, allowing it to use established management systems and customer relationships in the markets targeted for growth.
Travco was founded in 1979 by El Chiaty as a travel and tourism business. Since then, it has developed into a diversified group with activities covering hotels, aviation, transport, real estate, engineering, construction, security services and retail.
The company says its assets are worth more than 250 billion Egyptian pounds. It currently owns or manages over 68 hotels and hospitality facilities, with a total capacity of approximately 18,900 rooms.
The planned investment would add only a portion to that existing portfolio, but it could significantly improve the geographic balance of the group’s operations. Travco would have a larger presence across both Mediterranean and European markets, helping it reach travellers from different countries and reducing its exposure to fluctuations in any one destination.
The company is also pursuing expansion at home. Eight Egyptian hotels owned by Travco are expected to undergo development and modernisation as part of the group’s domestic programme. The work is intended to improve the properties and support the growth of the company’s hotel capacity in Egypt.
Egypt’s tourism industry has recorded strong growth in recent years, encouraging hotel operators to invest in additional rooms and upgrade existing facilities. The country expects to attract about 21 million foreign visitors this year, compared with approximately 19 million in 2025. That would represent an increase of around 10.5 per cent.
The target follows a rise of roughly 21 per cent in tourist arrivals during the previous year. Egypt has been promoting its ancient sites, Red Sea resorts, Mediterranean coastline and cultural destinations as part of a wider campaign to increase visitor numbers and generate more foreign currency.
Tourism is a crucial source of employment and revenue for Egypt. Growth in international arrivals benefits hotels and tour operators while also supporting airlines, restaurants, transport companies, retail businesses and local communities.
Travco’s domestic redevelopment plans are therefore expected to complement its international ambitions. Upgraded Egyptian properties could help the company benefit from rising demand at home, while its overseas investments would provide new sources of revenue and greater exposure to international travellers.
The decision to combine self-financing with bank borrowing suggests that Travco is seeking to expand without relying entirely on debt. However, the programme will still require careful management as interest rates, construction costs, exchange rates and tourism demand vary from one country to another.
The company will also face competition from global hotel chains and regional operators pursuing their own expansion plans. Success will depend on selecting suitable properties, completing developments on schedule and maintaining consistent standards across different markets.
For Travco, the 2027 programme represents more than an increase in room numbers. It is an attempt to transform the group from a predominantly Egyptian tourism company into a broader international hospitality operator. If the plan is completed, the company will have a larger platform from which to market its brands, attract tourists from new source markets and participate in the continuing expansion of the global hotel industry.
