British hospitality developer, The First Group, is making one of its biggest bets on Egypt’s tourism market through a new long-term partnership worth more than USD 670 million.

British hospitality developer The First Group is partnering with Egypt’s Pulse Developments to deliver more than 3,200 hotel units across three projects in Sharm El Sheikh, marking one of the largest recent hospitality investments in the country’s tourism sector.

Why You Should Care

The investment signals continued confidence in Egypt’s tourism industry at a time when the country is expanding its hospitality capacity to accommodate growing visitor demand. For investors, developers, and operators, the partnership highlights increasing appetite for internationally branded hotel assets in one of the region’s fastest-growing tourism markets.

The companies plan to establish an integrated platform that will develop, operate, and market hospitality projects under global hotel brands, creating a pipeline of new hospitality assets rather than a single standalone development.

The Details

The first phase will include three hotel projects across Sharm El Sheikh, delivering more than 3,200 hotel units within four years.

The first project, Sharm Oasis in Nabq, will feature approximately 470 hotel units with investments exceeding USD 100 million. Construction is expected to take around 18 months.

A second development, scheduled to be announced within the next few weeks, will be located in Naama Bay and include 304 hotel rooms with investments estimated between USD 65 million and USD 70 million.

The largest project will rise in El Montazah, where the partners plan to develop at least 2,500 hotel units backed by more than USD 500 million in investment.

The First Group enters the partnership with significant hospitality experience. The Dubai-based company manages a hotel portfolio valued at more than USD 5 billion across 20 properties and works with international operators including Marriott International, Millennium Hotels & Resorts, and Wyndham Hotels & Resorts. The company also serves more than 8,000 investors representing nearly 200 nationalities.

Executives said the company intends to continue expanding in both Egypt and the UAE by launching around two new projects annually, while Pulse Developments is also growing its Egyptian land portfolio with plans to acquire additional sites, including land near Cairo’s Grand Egyptian Museum.

The Ripple

The investment extends beyond adding hotel capacity. It reinforces Sharm El Sheikh’s position as a priority destination for international hospitality developers while supporting Egypt’s broader strategy of attracting tourism investment and increasing the supply of globally managed accommodation.

The partnership could also create opportunities for international hotel operators, construction firms, and tourism service providers as new developments move from planning into execution.

What to Watch

The next milestone will be the announcement of the Naama Bay project, expected within weeks, followed by construction progress on Sharm Oasis. Investors will also be watching whether The First Group follows through on its broader expansion strategy in Egypt, which could signal additional foreign capital flowing into the country’s hospitality sector over the coming years.