Economic Impact

Economic impact in the case study focuses on the hotel revenue from rooms and suites reservation, and the impact of construction in term of materials used that will provide opportunities for factories.

Hotel Revenue

The estimated hotel revenue is composed of two main sources: the hotel rooms/ suites and the hotel services, mainly restaurants, business centres, and multipurpose halls as indicated in Fig. 9.46. In the case study, the revenue was mainly calculated based on room and suites reservation per night as it is obvious and can be calculated accurately. The Hilton Ramses hotel contains 24 rooms and six suites per floor, making the total of 720 hotel rooms (single/double) and 180 suites in the whole hotel. The average price of rooms, single and double, on average price was USD139

Hotel revenue components

Fig. 9.46 Hotel revenue components

Box 9.10 Hotel rooms and suites’ revenues

Number of rooms each floor

Total rooms/suites

Price of each room per night


24 rooms

720 total rooms

139 average USD/night


6 suites

180 total suites

271 Average USD/night


At 100 % occupancy


At 75 % occupancy


Table 9.1 Elementary construction materials in Hilton Ramses hotel


Volume (m3)

Mass (tonnes)

R. C. concrete















per night while the average price per suite per night was USD271 (Booking Website 2015). The total revenue from hotel room suites shown in Box 9.10 indicates the revenue at occupancy of 70 % and occupancy of 100 %. The total rooms and suites revenue were found at occupancy of 70 % to be USD104,202 per night and at occupancy of 100 % to be USD148,860 per night, higher by 42.86 %.

Construction Materials

The construction of a hotel of this size would require large amounts of materials, which have to be met by local factories (steel, cement, glazing, brick, aluminium factories, etc.). This leads to an economic flourish of these crucial industries as well as the transportation of tremendous amounts of materials from the factories to the site. The amount of the elementary construction materials estimated for the construction of the hotel is shown in Table 9.1. For example, the steel production for “Egyptian Iron and steel Co.” was 278,683 tonnes/year at 2012/2013, which is about 23,223.5 tonnes steel per month (Egyptian Iron and Steel Co. 2015), the steel in our structure is about 8104.775 tonnes—about 34 % of the factory monthly production, so the highest amount of materials provides factories with ways to sell their products which in turn causes an economic flourish, the same principle can be used for other materials for construction.

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