MG Developments has unveiled VALO Hospitality, its dedicated hospitality management arm, marking a strategic step to enhance integration between real estate development and the professional operation of hotel assets. The initiative aims to create sustainable added value for both projects and clients.
Chairman of MG Developments, Mohamed Motawea, said, “The introduction of VALO Hospitality forms part of an ambitious five-year expansion strategy, under which we plan to invest approximately EGP 2bn in the hospitality sector. This move reflects our commitment to enhancing asset returns, diversifying revenue streams, and reducing the impact of seasonality on tourism-driven projects.”
During the press conference, Motawea emphasized that the launch represents a strategic shift in the group’s business model. Hospitality management is no longer viewed as a complementary activity to real estate development but as a core component in safeguarding asset value and ensuring sustainable returns for investors.
Through VALO Hospitality, MG Developments plans to develop and operate six hotels, with a combined inventory of more than 600 rooms and suites.
Motawea added that creating a dedicated hospitality management entity will allow for the standardization of leasing and operational frameworks in accordance with unified professional standards. This approach will safeguard the premium positioning of the group’s developments, enhance service quality, and elevate the overall guest experience by raising hospitality performance benchmarks.
The hotel strategy in Ain Sokhna targets multiple segments, including leisure and family tourism, short- and medium-term stays, business travelers, and the MICE segment (Meetings, Incentives, Conferences, and Exhibitions). This will be supported by four modern meeting and conference halls in New Cairo and Ain Sokhna, contributing to higher occupancy rates and reducing seasonal fluctuations in demand.
Several of the company’s projects feature hospitality components. At Blue Blue Resort, MG Developments operates the La Cabana Beachfront Hotel, currently in its soft-opening phase. Another hotel at the resort has been structurally completed and is undergoing interior finishing, with a planned launch by the end of 2027. Additionally, a five-star hotel is under construction, scheduled to open in 2028.
The project also includes a fully integrated beachfront cabin zone, featuring a dog-friendly beach, 120 wooden cabins, and a seaside restaurant complex. This addition caters to various segments, including leisure and family travelers, short- and medium-term stays, and business guests.
Meanwhile, at the Solara Project, two hotels with a total of 260 rooms are under construction, with planned openings in 2029. These hotels will offer full-service hospitality, and negotiations are underway with a major international hotel brand to manage one of the hotels according to global standards, ensuring the highest level of operational quality.
Motawea noted that VALO Hospitality will not be limited to managing MG’s own projects. It also aims to operate and manage hotel assets both within and outside the company’s developments, building an independent operational platform capable of delivering professional services to third parties, generating sustainable returns, and preserving long-term investment value.
The company’s vision through 2030 focuses on cementing its position as a leading entity in integrated real estate development linked with hospitality management, while expanding geographically across the North Coast, East and West Cairo, and Ain Sokhna. This approach supports sustainable growth through seamless integration of development, operations, and asset management.
MG Developments’ diverse portfolio includes Blue Blue Sokhna Resort, spanning 120,000 sqm and developed in six phases, featuring chalets, villas, and hotel units.
Other key projects include:
• The Mark: A mixed-use development in the Downtown area of the New Capital, covering 3,200 sqm with a building ratio of 30%.
• ProMark: A commercial and administrative project located on 8,836 sqm in the New Capital, distinguished by strategic location and unique design.
• HQ (Headquarters Business): An administrative project in New Cairo covering 5,000 sqm.
• Premium Business: The group’s second commercial-administrative project in the Fifth Settlement, New Cairo.
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