Sofitel and Orascom Development Egypt sign resort project in El Gouna on Red Sea coast

Sofitel and Orascom Development Egypt have signed an agreement in 2026 to develop a new resort in El Gouna on Egypt’s Red Sea coast, the companies said, marking an expansion of international hotel presence in the coastal destination driven by tourism demand and infrastructure growth.

Agreement signed for El Gouna resort

The agreement was announced by Sofitel, a brand under Accor, and Orascom Development Egypt to establish a new resort property in El Gouna, a resort town located along the Red Sea. The project will be developed as part of ongoing expansion plans within Egypt’s tourism sector.

Company officials confirmed that the property will be developed under a management agreement, with Orascom responsible for development and Sofitel overseeing branding and operations upon completion. The financial terms of the deal were not disclosed.

The resort is expected to include accommodation units, dining facilities and leisure infrastructure aligned with international hotel standards.

Project location and scope

The resort will be situated in El Gouna, a master-planned destination developed by Orascom Development, known for its tourism infrastructure and coastal access. The location is positioned to attract both international and domestic travelers visiting the Red Sea region.

Officials stated that the development will be integrated into the existing hospitality and residential framework of El Gouna, which includes hotels, marinas and recreational facilities. The project aims to complement the destination’s existing offerings.

No details were released regarding the number of rooms, construction timeline or opening date.

Expansion strategy in Egypt

Sofitel said the signing aligns with its strategy to expand its footprint in key tourism markets, including Egypt, where international visitor arrivals have been recovering. The company currently operates multiple properties in the country and continues to evaluate new opportunities.

Orascom Development Egypt indicated that the partnership supports its long-term plan to enhance hospitality capacity in El Gouna, which has seen sustained interest from investors and travelers. The company has been developing the destination over several years.

Executives noted that the addition of a new resort will contribute to accommodation supply in the area.

Tourism and market context

Egypt’s Red Sea coast remains a major tourism hub, with destinations such as El Gouna attracting visitors for leisure travel. Industry participants said demand for coastal resorts has remained consistent, supported by international tourism flows.

Hospitality operators have continued to invest in new developments and upgrades across the region to meet evolving traveler preferences. The signing reflects ongoing activity in Egypt’s hotel development pipeline.

Authorities have also been promoting tourism projects as part of broader economic initiatives.

Development and operational model

The project will follow a development and management structure, with Orascom overseeing construction and asset ownership while Sofitel will manage operations under its brand standards. The hotel will be integrated into Accor’s global reservation and loyalty systems upon opening.

Operational services are expected to include front office, housekeeping and food and beverage management. The companies did not provide details on staffing or procurement plans at this stage.

Further announcements are expected as the project progresses through development phases.

Current status

The Sofitel El Gouna resort project remains in the planning and development stage as of 2026, with construction timelines and opening details yet to be announced by the companies.