TMG Pays USD 800 Million to Acquire Majority Stake in Iconic Hotels

Talaat Mostafa Holding Group's (TMG) Arab Hotel and Tourism Investments subsidiary, ICON, has reached an agreement with the Egyptian government to increase its stake in the Egyptian General Company for Tourism & Hotels (E.G.O.T.H) to 51% from the previous 39%.

Egypt's sovereign wealth fund has signed a USD 800 million deal with Egypt's TMG to sell a stake in seven of Egypt's most historic hotels; Sofitel Old Cataract Aswan, Mövenpick Resort Aswan, Sofitel Winter Palace Luxor, Steigenberger Tahrir, Steigenberger Cecil Alexandria, Marriott Mena House Hotel and the Cairo Marriott. The move comes as the government grapples with a shortage of foreign currency and increasing debt burdens.

The deal involves an international investor purchasing a minority stake worth USD 882.5 million in TMG's hospitality company ICON. This investment will facilitate the acquisition of the USD 800 million stake in E.G.O.T.H, the state-owned group that owns the seven prestigious hotels.