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ADQ and Adnec acquire stake in Egypt luxury hotels

Egypt expects to receive more than 30 million tourists annually by 2028 Unsplash.com/José Ignacio Pompé
Egypt expects to receive more than 30 million tourists annually by 2028

Abu Dhabi’s ADQ and Adnec Group have signed agreements to acquire a 40.5 percent stake in Egypt-based Talaat Moustafa Group Holding’s hospitality subsidiary.

The two UAE companies will invest through a special purpose vehicle through a capital increase to acquire a stake in Icon Group, the UAE state-run Wam news agency reported.

ADQ will own 49 percent while Adnec will hold 51 percent equity ownerships.
Icon owns four hotels – Four Seasons Cairo at Nile Plaza, Kempinski Nile Hotel Cairo, Four Seasons Sharm El Sheikh and Four Seasons Alexandria at San Stefano.

It has three hotels and luxury residential real estate assets currently under development, such as the Four Seasons in Madinaty and Luxor and Radisson Collection in Marsa Alam, and one hotel under design, the Four Seasons at The Pyramids.

The transaction represents a major foreign direct investment in Egypt, as the North African nation expects to receive more than 30 million tourists annually by 2028.

The investment in TMG’s hospitality arm will be used partially to deleverage the existing debt of Icon, with the remaining used for acquiring a stake through Icon in the portfolio of seven luxury heritage hotels owned by the Egyptian Government, for which definitive agreements have been signed.

The seven hospitality assets include Marriott Cairo Omar Khayyam Zamalek, Marriott MENA House Cairo, Sofitel Winter Palace Luxor, Sofitel Legend Old Cataract Aswan, Steigenberger Cecil Hotel Alexandria, Steigenberger Hotel El Tahrir Cairo and Mövenpick Resort Aswan.

Post-transaction, Icon will have a combined portfolio of 15 luxury and upscale hospitality assets with around 5,000 keys in prime locations such as Cairo, Luxor, Aswan, Sharm El Sheikh and Alexandria.

The transaction is subject to regulatory approvals.

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