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TMG partners with Emirati ADNEC to partially acquire several Egyptian state-run hotels

The seven hotels are owned by the Egyptian General Company For Tourism and Hotels (EGOTH).
07.08.23 | Source: daily news egypt


Daily News Egypt understands that the Emirati ADNEC Group is the foreign investor that partners with Talaat Moustafa Group (TMG) to acquire a “significant stake with management rights in a sizable portfolio of seven state-owned hotels.”

The offer has been made through TMG’s subsidiary Arab Company for Tourism and Hotels Investments (ICON). TMG owns 83.3% of ICON’s shares.

ICON’s proposal includes the acquisition of majority stakes in the Sofitel Legend Old Cataract Aswan, Mövenpick Resort Aswan, Sofitel Winter Palace Luxor, Steigenberger Hotel Tahrir, Steigenberger Cecil Hotel Alexandria, Marriott Mena House Cairo and Marriott Omar Khayyam Zamalek.

The seven hotels are owned by the Egyptian General Company For Tourism and Hotels (EGOTH).

TMG and EDNIC will invest $700m to increase the capital of the EGOTH by around 37%.

The sources indicated that the company will subscribe and pump investments as soon as the procedures related to the final signing are completed within less than two months.

The deal is in line with TMG’s strategic growth plan as a major player in the luxury hotel sector in Egypt.

ICON aims to develop and modernize the new portfolio to be in line with its existing activities in the field of current hotel projects and to create value for its shareholders through acquisition.

Upon its completion, the acquisition will result in ICON portfolio reaching 15 hotels, with a total hotel room base exceeding 5,000 rooms, including projects under construction and development. The acquisition will also contribute to achieving future revenues in hard currency, in line with the group’s strategy of maximizing the company’s recurring income activities.