North Africa's Best-Kept Secret: Tunisia's Hotel Market Is Heating Up Fast

NICOSIA, Cyprus - May 13, 2025 - PRLog -- Tunisia is turning heads on the global investment stage as its hotel real estate market prepares for a historic breakout year. Once a well-kept secret of European tourists, this North African gem is now being rediscovered by international hotel operators, private equity firms, and Gulf-based investors who see Tunisia as the next untapped frontier for hospitality assets.

With over 1,300 kilometers of pristine Mediterranean coastline, thriving cultural heritage sites, and a young, dynamic population, Tunisia offers a compelling blend of affordability, growth potential, and strategic location — just a 2-hour flight from most European capitals.

"Tunisian hotels are now trading at 30–40% below replacement cost, while occupancy rates and tourism arrivals are climbing fast post-pandemic," said Shazad Chohan, Founder of United Capital Group, who is actively advising Gulf and European investors on acquisitions across Tunisia. "This is a generational buying moment. Investors are waking up to the fact that they can acquire beachside hotels, historic riads, or even full portfolios at entry-level prices — and with serious upside."

In 2024 alone, Tunisia welcomed over 9 million tourists — a 25% increase from the previous year — with projections pointing to an all-time high in 2025, thanks to government-backed tourism campaigns and relaxed visa rules for key markets including China, Saudi Arabia, and the Gulf.

Global operators are taking notice. Several international brands, including Accor, Swiss-Belhotel, and Radisson, are scouting for management contracts or franchise opportunities. Boutique hotels in Sidi Bou Said, beachfront resorts in Hammamet, and city hotels in Tunis are seeing renewed interest from developers and family offices alike.

"Tunis is becoming the next Casablanca, but with more charm and less saturation," added Chohan. "And coastal gems like Djerba and Sousse are now on every serious investor's radar. The margins here are phenomenal — and so is the potential for capital appreciation."

Adding to investor confidence is Tunisia's ongoing economic reform program supported by international institutions, and a more investor-friendly climate encouraging foreign ownership, long-term leases, and fast-track development zones.

With a median hotel price still under €1 million for 3–4-star assets, Tunisia offers one of the highest yields in the MENA region — and one of the lowest barriers to entry.

If Dubai and Egypt were yesterday's story, Tunisia is today's opportunity.

Email: info@unitedcapitalgroup.eu
Website: www.unitedcapitalgroup.eu