Marrakech – In a significant development for the hospitality industry, Egypt’s Pickalbatros Hotels & Resorts has successfully secured a substantial $200 million loan from the World Bank, a move aimed at financing a major expansion of its hotel portfolio in Morocco. This announcement was confirmed by Chairman Kamel Abou-Aly, who indicated that the group anticipates receiving these funds by August or September.
The loan will facilitate the launch of four new projects in prominent cities such as Casablanca and Marrakech, with the addition of approximately 800 new rooms to enhance the group's operations in Morocco. This funding marks a historic moment as it represents the World Bank’s inaugural tourism-sector financing for a private entity within Africa, as highlighted by Abou-Aly in his discussions with Forbes Middle East.
A Vision for Expansion in a Thriving Market
Currently, Pickalbatros operates seven hotels in Morocco, boasting a total capacity of around 1,500 rooms. The latest addition to their portfolio was the Sanju Club resort in Marrakech, which opened its doors last September. With the upcoming developments, the group aims to increase its presence in Morocco to roughly 16 hotels and resorts, a strategic move that aligns with the country’s burgeoning tourism sector. In 2025, Morocco recorded an impressive 19.8 million tourists, reflecting a 14% increase year-on-year, and the trend continues with 7.7 million visitors in the first five months of 2026, indicating a 7% annual growth rate. Morocco is ambitiously targeting the addition of 25,000 new hotel rooms in preparation for co-hosting the 2030 FIFA World Cup alongside Spain and Portugal.
Beyond its ventures in Morocco, Pickalbatros is also eyeing growth opportunities in other markets. The group plans to inaugurate its first hotel in Cairo, named Le Méridien Al Orouba, featuring 280 rooms by the end of 2026, and is set to open a 620-room Paradise hotel in Sharm El Sheikh within the same timeframe. While Abou-Aly has not disclosed the financial commitments for these projects, the group's current portfolio in Egypt includes 25 hotels, offering over 21,000 rooms. This year, Pickalbatros aims to introduce 2,000 additional rooms and suites across various locations, including Marsa Alam and Hurghada, having recently opened significant new capacities in these regions.
Strategic Investments and Future Growth
Since its inception in 1992, Pickalbatros has achieved remarkable growth, with total investments nearing $5 billion. The group has earmarked $200 million in capital expenditures for 2026, representing a notable increase of over 120% compared to the previous year. Furthermore, Pickalbatros is actively exploring investment opportunities in Oman, particularly in Salalah and Muscat. Earlier this year, the group signed a memorandum of understanding with Oman’s Shati Al Nakhil to manage a new 350-room hotel, marking its first venture into the Gulf market.
On the Egyptian front, the tourism sector has seen a resurgence, with 5.6 million arrivals recorded in the first quarter of 2026, translating to a remarkable 43.5% year-on-year increase. Revenue during this period approached $5.1 billion, reflecting a 34% rise from the previous year. Egypt aims to attract $35.4 billion in tourism investments to create 340,000 new hotel rooms by 2031, significantly boosting its total capacity from 228,000 at the end of 2024 to an anticipated 568,000.
In June, the International Finance Corporation (IFC), the private-sector arm of the World Bank Group, disclosed plans to support Pickalbatros’s expansion in Morocco through a potential $200 million investment package. According to the IFC, the total estimated cost of the investment program is around $350 million. The funding structure includes a $160 million senior loan from the IFC, complemented by a $40 million tranche from partner lenders, while Pickalbatros will contribute an additional $150 million from its equity. The IFC’s allocation plan designates $125 million for acquiring two hotel establishments, $105 million for renovation and modernization of these properties, $65 million for enhancing the sustainability of existing hotels, and $55 million for refinancing a portion of the group’s local medium-term debt. Projects are set to span across key locations including Marrakech, Agadir, and Casablanca, with the IFC board scheduled to review the proposal at its session on June 29.
As reported by moroccoworldnews.com.
