Real estate sales for the 9M 2021 reaches EGP 6.2 billion, an increase of 43.4% y-o-y.
Orascom Development Egypt (ODE), is pleased to announce its preliminary real estate and hotels KPIs for the 3Q 2021.
Real Estate 9M 2021 KPIs:
New sales for the 3Q 2021 reached EGP 2.2 billion, a 50.3% increase from EGP 1.5 billion in 3Q 2020. That brings our 9M 2021 sales value to EGP 6.2 billion, a 43.4% increase over 9M 2020. The positive momentum that we continued to witness in the third quarter of the year further solidifies the company’s strong positioning in the industry and its ability to take advantage of the existing demand in the local market with its well-tailored products.
2021 has been a year where we continued to strengthen our positioning, focused on execution, and further horizons expansions. Even during the midst of the pandemic, all our residential projects received strong interest across our destinations. We also continue to leverage consumer insights, identifying the emerging buying behavior trends post pandemic and accordingly designing an array of products that will potentially cater to their needs.
El Gouna continues to affirm its position as the «destination of choice» and records a 72.5% increase in net real estate sales to EGP 3.05 billion in 9M 2021 vs. EGP 1.8 billion in 9M 2020.
Makadi Heights, our rising star destination on the Red Sea, continued to deliver excellent sales performance since the beginning of 2021. Net sales increased by 153.6% to EGP 854.7 million from EGP 337.0 million in 9M 2020.
O West, recorded EGP 2.3 billion in sales for the 9M 2021, a growth of 43.9% compared to EGP 1.6 billion in 9M 2020.
The increase in sales was a factor of both, our ability to increase the average selling prices and the number of units sold.
9M 2021 vs. 9M 2020 Real Estate KPIs:
* Net sales value for 9M 21 includes 3 units sold in Fayoum for EGP 6.8mn (9M 20: EGP 15.6mn – 5 units sold).
* Land sales in 9M 20 includes EGP 104.2mn of land sales in Gouna and EGP 509.1mn in O West.
3Q 2021 vs. 3Q 2020 Real Estate KPIs:
*Net sales value for Q3 20 includes 2 units sold in Fayoum for EGP 4.4mn.
*Land sales in Q3 20 includes EGP 104.2mn of land sales in Gouna.
Hotels 9M 2021 KPIs:
Demand for the hospitality segment started to improve during the second half of 2021, as vaccine deployment accelerated and lockdowns eased across the country, our portfolio continued to gather revenue momentum through Q3 2021. It has been such a positive sight to see our team welcome more guests back into our hotels, with domestic leisure bookings leading our occupancies, followed by MICE (Meetings, Incentives, Conferences and Exhibitions) business events and a slight uptick with the return of foreign tourists.
In Egypt, as per the governmental decree, hotels increased their operational capacity to 70% since July 4, 2021. Our hotels in El Gouna and in Taba Heights have benefited from this uptick with occupancies for the 9M 2021 reaching 37% and 10% respectively and 52% and 22% for Q3 2021. We started receiving some charter flights from Germany and some Eastern European countries in El Gouna. Foreigners represented c. 35% of our total occupancy in Gouna during Q3 2021. We remain optimistic for our Egyptian destinations and foresee a continued positive trend for the Q4 2021.
9M 2021 & 3Q 2021 Hotels KPIs:
About Orascom Development Egypt (ODE):
Orascom Development Egypt (ODE) is the largest subsidiary of Orascom Development Holding AG (ODH). ODE is an integrated developer of resort towns in Egypt with a vertically integrated business model involving the development of residential units, hotels and recreational facilities such as golf courses, town centers, marinas, in addition to supporting infrastructure such as hospitals, schools and utilities. ODE currently owns a land bank of 49.9 million square meters and 24 hotels with a total of 4,945 rooms within four operating destinations: El Gouna, on the Egyptian Red Sea Coast in Hurghada, Taba Heights, on the Sinai Peninsula, Makadi Heights in Hurghada and Byoum in Fayoum. ODE launched O West, the latest addition to its portfolio and its first project in Cairo, Egypt, located in the Sixth of October City.
Contact for Investors:
Sara El Gawahergy
Head of Investor Relations and Strategic Project Management Tel: +202 246 18961
Tel: +20100 218 5651
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The information contained in this e-mail, its attachment and in any link to our website indicated herein is not for use within any country or jurisdiction or by any persons where such use would constitute a violation of law. If this applies to you, you are not authorized to access or use any such information. Certain statements in this e-mail and the attached news release may be forward-looking statements, including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Forward-looking statements include statements regarding our targeted profit improvement, return on equity targets, expense reductions, pricing conditions, dividend policy and underwriting claims improvements. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and Orascom Development Egypt’s plans and objectives to differ materially from those expressed or implied in the forward-looking statements (or from past results). Factors such as (i) general economic conditions and competitive factors, particularly in our key markets; (ii) performance of financial markets; (iii) levels of interest rates and currency exchange rates; and (vii) changes in laws and regulations and in the policies of regulators may have a direct bearing on Orascom Development Egypt’s results of operations and on whether Orascom Development Egypt will achieve its targets. Orascom Development Egypt undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events, or circumstances or otherwise. It should further be noted that past performance is not a guide to future performance. Please also note that interim results are not necessarily indicative of the full-year results. Persons requiring advice should consult an independent adviser. Occupancy % ARR (EGP) TRevPAR (EGP) GOP PAR (EGP)
Destination 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020
El Gouna 37% 28% 1,496 1,212 733 477 270 47
Taba Heights 10% 13% 539 467 82 96 (56) (104)
Fayoum 15% 14% 1,190 1,281 270 293 (37) 21
Occupancy % ARR (EGP) TRevPAR (EGP) GOP PAR (EGP)
Destination Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020
El Gouna 52% 19% 1,591 1,565 1,095 380 503 32
Taba Heights 22% 10% 581 589 180 84 (53) (83)
Fayoum 14% 10% 991 741 225 123 (102) (122)