DUBAI: Orascom Hotels Holding, SHUAA Hospitality Fund and Rotana Hotel Management Corporation recently announced a joint venture that will invest $40 million into developing budget business hotels in Egypt. The hotels will be managed by Rotana, one of the leading hotel chains in the Middle East and North Africa region. "The partnership will see the initial development of five hotels under the brand Centro by Rotana and will capitalize on the growing need for affordable, trendy budget business hotels in Cairo and other strategic locations in Egypt, according to a press statement. "We are excited about this joint venture, which falls directly in line with Orascom's strategic plan to grow its extensive presence in Egypt. Reducing the shortage of branded budget hotels such as Centro by Rotana is a major opportunity and a top priority for us, said Raymond Khalife, chairman of Orascom Hotels Holding (OHH). OHH is the largest owner of hotel rooms in Egypt and currently has 5,800 rooms in operation with a target to reach 10,000 by 2010, he added. "These new developments will increase the diversity of our hotel portfolio enabling us to cater different travelers' profiles, said Khalife. SHUAA Hospitality Fund I - a new fund managed by SHUAA Partners, the private equity arm of SHUAA Capital - will finance the developments. Iyad Duwaji, chairman of SHUAA Partners, said, "Three strong industry leaders who are committed to the region partnered today, complementing each other in many ways. "The hospitality sector in the region is enjoying many positive internal and external factors that require additional investments to meet growing demand, and the budget sector is still vastly undifferentiated in our markets. Business travel and accommodation for the budget conscious executive is an increasingly important market in the Middle East but remains grossly under-serviced, they explained. The Centro by Rotana concept is caters to this expanding market, "appealing to large corporate entities, small and medium business owners, and individual travelers, said a statement to the press. Centro by Rotana is an Essential Service hotel brand. "We are redefining the conventional concept of economical comfort and offering affordable superior class accommodation and hospitality, said Selim El Zyr, president and CEO of Rotana.
