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Daily News Egypt
14 hours ago
- Business
- Daily News Egypt
Egyptian government reviews ICON's development plan for 7 state-owned hotels
Egypt's Prime Minister Moustafa Madbouly has reviewed development plans by the Arab Company for Hotel and Tourism Investments (ICON) for seven historic hotels, following the finalisation of a deal valued at up to $800m for a controlling stake in the portfolio. The Prime Minister held a meeting to follow up on the plans for the hotels, describing them as having significant cultural value and promising market potential. He affirmed the meeting's purpose was to track the implementation of development strategies in partnership with the private sector. 'We are following up on the development plans for these historic hotels to raise their operational efficiency and maximise the return from these tourism assets in partnership with the private sector,' Madbouly stated. The meeting was attended by Minister of Tourism and Antiquities Sherif Fathy, Minister of Public Business Sector Mohamed Shimy, Minister of Investment and Foreign Trade Hassan El-Khatib, and Hisham Talaat Moustafa, CEO and Managing Director of Talaat Moustafa Group Holding (TMG). ICON, a subsidiary of TMG, has signed final agreements to acquire a 39% stake and full management rights in Legasi Hotels, a new company that owns the portfolio of seven hotels. The stake is set to increase to 51% within a specified contractual period, at which point the deal value will reach $800m. The acquisition will be financed through ICON's internal resources and a capital increase of $882.5m from an international strategic investor, who will acquire a minority stake in ICON. TMG will retain its majority stake in the company. TMG Holding has previously stated it expects revenues from the seven-hotel portfolio to double and exceed $250m by 2024. The hotels included in the portfolio are Marriott Mena House Cairo, Marriott Omar Khayyam Zamalek, Mövenpick Resort Aswan, Sofitel Legend Old Cataract Aswan, Sofitel Winter Palace Luxor, Steigenberger Hotel Tahrir, and Steigenberger Cecil Hotel Alexandria. Cabinet spokesperson Mohamed El-Homsany said the meeting reviewed ICON's plans for the hotels, which were part of the state's public offering programme. The initiative aligns with the government's 'State Ownership Policy Document' to maximise the value of state-owned tourism assets. The spokesperson added that the ongoing development and modernisation work was discussed, which is part of a plan aimed at restoring the hotels while preserving their unique architectural and historic character. The efforts seek to enhance the properties' tourism value and attract a wider segment of tourists, supported by strong regional and global promotion. El-Homsany added that the presented plans reflected significant investments being channelled into the hotels. He noted that the current phase represents a major step in renovating the properties and improving services to meet international hospitality standards, with significant returns expected for the state and investors.
Middle East
14 hours ago
- Business
- Middle East
OPEN// PM reviews project to revamp 7 historic hotels in partnership with private sector
CAIRO, June 16 (MENA) - Prime Minister Mostafa Madbouly chaired a meeting Monday to follow up on the plans of the Arab Company for Hotel and Tourism Investments (ICON) to develop and manage seven historic hotels in Egypt. The hotels were previously offered as part of the government's initial public offerings (IPOs) program. The meeting was attended by Minister of Tourism and Antiquities Sherif Fathy, Minister of Public Business Sector Mohamed Shimi, Minister of Investment and Foreign Trade Hassan El-Khatib, and Talaat Mostafa Group CEO and Managing Director Hisham Talaat. The premier said the meeting aimed to review the progress of development plans for these historically significant hotels, which hold great cultural value and strong marketing potential. The initiative aligns with the goals of the State Ownership Policy Document, which seeks to maximize returns from tourism assets through partnerships with the private sector, contributing to the modernization and operational efficiency of these hotels, while attracting more guests and tourists, he added. Cabinet Spokesperson Mohamed el Homsany said the meeting included a presentation by ICON on the development of seven iconic hotels located in Cairo, Alexandria, Aswan and Luxor, including Steigenberger Cecil Alexandria, Cataract Aswan, Mövenpick Aswan, Sofitel Winter Palace Luxor, Steigenberger El Tahrir, Marriott Mena House, and Marriott Omar Khayyam Zamalek. ICON acquired a stake in these hotels through a deal announced in December 2023. The spokesperson added that discussions touched on ongoing work to renovate and upgrade these historic hotels under a restoration plan preserving their architectural and cultural identity to boost their tourism value and appeal to a wider range of international visitors, along with enhanced regional and global marketing efforts. (MENA) M S H/R E E
