Sahl Hasheesh

Sahl Hasheesh International Resort Community

Sahl Hasheesh is ERC’s unique, purpose-built Red Sea destination, located 18 kilometers south of Hurghada International Airport (around 450 kilometers from Cairo). This 4,100 hectare year-round development, approximately two-thirds the size of the island of Manhattan, is expected eventually to exceed the population of Hurghada. The 12-kilometer-long bay has long been a popular destination, renowned for excellent diving and a beautiful beach, one the longest stretches of swimmable bays on the Egyptian Red Sea coast.

ERC acquired the Sahl Hasheesh land bank in 1995. Over the years, in partnership with leading master developers, ERC has built Sahl Hasheesh according to the highest international standards, growing the weighted average price (WAP) of its land bank to a high of USD 143 per square meter in 2008.

The infrastructure of the 5.6 million square meter Phase I area of the resort is near completion and the opening of the first hotels and apartments occurred in the first half of 2007. With stunning five-star hotels, luxurious apartments, a beautiful downtown waterfront, unforgettable dive sites, golf courses, a cinema complex, and a world-class marina, Sahl Hasheesh is poised to become one of the most exclusive addresses on the Red Sea.

Nestled in the spectacular surroundings of Sahl Hasheesh, exclusive hotels and apartments with direct beach access are now available for short-term stay, purchase or lease. The resort’s 5-star hotels, including the Sahl Hasheesh Marriott Beach Resort (formerly the Old Palace), Pyramisa (now Dessole), Premier Le Reve and Premier Romance offer vacationers the best value-for-money on the Egyptian Red Sea coast. The highest quality flats – at Azzurra, Palm Beach Piazza, El Andalous, Ocean Breeze and Sunset Pearl – offer second home buyers and investors a first-rate price/performance ratio. Short flight times from all European capitals, a warm climate throughout the year and the government’s commitment to expanding the tourism industry promises dynamic growth in tourist arrivals and Red Sea real estate prices in the coming years.

Download the Sahl Hasheesh International Resort Community Photo Album.

The Development of Sahl Hasheesh

Phases I and II of Sahl Hasheesh are presently home to over 1,580 hotel rooms and suites and 679 residential units managed by brands including Premier Le Reve, Premier Romance, Pyramisa, and Marriott Old Palace. In addition to the completed hotels and residential neighbourhoods, 31,309 square meters of retail and entertainment property is currently available for lease.

The quality of the developments completed thus far and the promise of an excellent long-term return on investment formed the basis of negotiations with Orascom Development Holding (ODH) for the development of the Sawari Marina and surrounding real estate, a central feature of the Sahl Hasheesh seascape and lifestyle. ERC signed with ODH in early 2010, adding another industry leader to the Sahl Hasheesh developer lineup. The completion of the Marina will bring online an asset that will directly expand ERC’s recurring revenue streams, in the form of harbor rental and management fees. The Marina will also play a vital role in attracting future investors and second home purchasers.

Recent Progress

  • The 10,000 square-meter Arrivals Piazza is complete and hosts weekly events featuring entertainers from all over the world.
  • Grand Opening of the Premier Romance hotel in August 2010.
  • Finalization of the master plan for the Sawari Marina.
  • Signing of Jones Lang LaSalle in October to set the retail mix strategy and tenancy mix plan for Old Town.
  • The first shop has opened in Old Town, selling apartment finishes and furnishing.
  • Launch of an international print marketing campaign targeting tour operators, real estate agencies, and prospective second-home owners.

On the Horizon

Under the terms agreed to in 2010, existing sub-developers will, starting in 2012, begin paying for the community services that ERC had formerly provided free of charge, offsetting an average quarterly cash flow of EGP 3-5 million. The full implementation of the Community Fees Model will deliver a substantial boost to one of ERC’s important sources of recurring revenues.

Although the Egyptian tourism industry faces unique challenges in 2011, development at Sahl Hasheesh is continuing apace. With its strong, liquid balance sheet, ERC is strategically allocating both financial and human resources towards hastening progress on the Company’s strategic assets and launching additional projects. The remainder of 2011 at Sahl Hasheesh will feature:

  • Initial dredging at the Sawari Marina.
  • Additional tenants occupying premium retail outlets at the Old Town, which will soon feature a comprehensive array of amenities, from designer retail, fine dining, and vibrant nightlife to spas, cinemas, and children’s play areas.
  • The reopening of the Old Palace Hotel as the Marriott Beach Resort at Sahl Hasheesh after a comprehensive renovation; Sahl Hasheesh now boasts over 1,580 operational hotel rooms.
  • The opening of the 5-star Tropitel Hotel.
  • The opening of the 4-star Ocean Breeze Hotel and Apartments complex.
  • Initial dredging adjacent to the Old Town to construct a 5-star boutique hotel by Golden Chain.
  • The Old Town Pier will be licensed to receive yachts.
  • A reassessment of the Phase II master plan and the recruitment of contractors to partner with ERC in launching additional projects within the company’s 4.94 million square meter land bank at Sahl Hasheesh.

In 2012:

  • Sahl Hasheeh will add anywhere between 1,500 and 2,000 hotel rooms bringing the total number to over 3,500.
  • The Sawari Marina basin construction will be well underway and the subsequent launch of official sales, accompanied by a number of promotional events and ongoing site tours.
  • A comprehensive marketing campaign for Sahl Hasheesh will take off promoting the entire 41 million square meter master planned destination to sub-developers.

Sahl Hasheesh Location

Sahl Hasheesh Scale Study

Sahl Hasheesh Phase III Master Plan by WATG