Aygün Group Chairman Mehmet Aygün has revealed Titanic Hotels’ expansion roadmap, highlighting international growth, brand development, and the company’s first franchise and hotel management ventures in Egypt.
Speaking on CNBC-e's Business Talks with Şafak Tükle, Aygün Group Chairman Mehmet Aygün shared the story behind the group's evolution from a restaurant business in Germany into one of Türkiye's leading hospitality companies.
Aygün said the company began its commercial journey in Berlin, Germany, where it opened its first Turkish restaurant in 1975. Through restaurant operations and participation in international food fairs, the group played a pioneering role in popularizing Turkish döner in the German market.
From restaurants to hospitality
According to Aygün, profits generated through the group's Hasır restaurant brand in Germany were reinvested in Türkiye. The company first entered the intercity coach transportation business before launching its hospitality operations with its first hotel in Istanbul's Şişli district in 1991.
Since then, the group has expanded its hotel portfolio across Taksim, Bakırköy, Antalya and Bodrum, while also operating five city hotels in Germany ranging from three to five stars.
Egypt marks a new growth phase
Aygün said the group's hotel portfolio has now grown to nearly 20 properties, adding that Titanic Hotels is entering a new stage of expansion.
He announced that the group's upcoming hotel project in Egypt will mark its first venture based on franchise and hotel management agreements rather than direct ownership.
Aygün noted that most global hotel brands expand through franchise and management models instead of owning hotel assets outright. He said the group's long-term strategy is to generate greater value through brand development while evaluating overseas investments based on political stability, financing conditions and feasibility studies in cooperation with banking partners.
Gastronomy drives resort success
Highlighting the differences between city hotels and resort properties, Aygün said gastronomy accounts for approximately 75% of the resort hotel experience.
He stressed that food quality and service standards are the defining elements of the all-inclusive model, adding that efficient service also helps reduce food waste and improve operational savings.
Aygün also said the group's newest luxury property, Cullinan, has been attracting strong demand and maintaining satisfactory occupancy levels.
To improve year-round sustainability, he explained that the company focuses on extending operations beyond the summer season by hosting congresses, business meetings, football teams, golf, canoeing and swimming groups throughout the year.
Rising costs remain the biggest challenge
Assessing Antalya's tourism market, Aygün said upper-segment hotels have generally maintained stable performance despite an estimated 9–10% decline linked to conflicts in the Middle East.
While emphasizing that the group has not experienced occupancy problems thanks to its international customer base, he identified rising operating costs and increasing expenses as the industry's most significant challenge.
Labour Shortages Continue After the Pandemic
Aygün also addressed the hospitality sector's ongoing shortage of qualified staff following the pandemic.
He said the company has recruited employees from countries including Indonesia, Kazakhstan and Uzbekistan to address workforce shortages.
According to Aygün, improving education and foreign language skills is essential to attracting and retaining Turkish employees in the tourism industry. He concluded that honesty, hygiene and high-quality service remain the foundations of long-term success in hospitality.