Egypt's Talaat Moustafa Group Holding (TMG Holding) said on Wednesday that it had submitted an offer through its hospitality arm to acquire a significant stake in a sizeable portfolio of seven unique hotels in Cairo, Alexandria, Luxor, and Aswan. In a bourse filling, TMG said its hospitality arm Arab Company for Tourism and Hotels Investments (ICON) had made an offer to acquire a significant stake and management rights in a unique and sizeable portfolio of seven hotels in Cairo, Alexandria, Luxor, and Aswan, all owned by the Egyptian General Company for Tourism and Hotels (EGOTH). These hotels are 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. "This strategic move aligns with the Group's growth strategy to solidify its position as the leading player in Egypt's upscale hospitality segment." TMG statement read. "ICON aims at renovating and upgrading the new portfolio to bring it in line with its existing upscale hospitality projects and create value for shareholders from the acquisition. It will bring ICON's hotel portfolio to a total of 15 and increase its room base to some 5,000, inclusive of projects under development and construction." The statement added that acquisition would also contribute to the future revenues earned in hard currencies and is in line with TMG's strategy to maximise the recurring income activities for the company. TMG holds a stake of 83.3 percent in ICON through its subsidiaries. "The purpose of this acquisition is to undertake development and upgrading of these hotels in order to bring their operational efficiency to higher levels, enabling them to attract a higher quality of tourism to Egypt, leveraging on their unique and historical significance. "The upgrades and modernisations will result in increasing their revenues as a function of higher room rates compared to the current levels achieved by these hotels." This transaction is in line with the Egyptian government's policy to promote the role of the private sector in the country, TMG noted. The Group has appointed EFG Hermes as the financial advisor for the transaction. "There is an ambitious plan to undertake a significant development and modernisation process for this group of hotels within the scope of the acquisition, considering the unique diversity of tourist destinations."
