ADQ and ADNEC Group sign definitive agreements with Egypt's real estate developer Talaat Mostafa Group's hotel arm, ICON, 12 January 2024. Photo: ADQ Website
ADQ and ADNEC will invest through a special purpose vehicle, with 49 percent equity ownership by ADQ and 51 percent by ADNEC.
The Emirati investment in ICON Group will be used partially to deleverage ICON's existing debt. At the same time, the remaining will be employed to acquire a stake through ICON in the portfolio of seven luxury hotels owned by the Egyptian government.
The seven 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.
ICON, which has a track record of building and owning Egypt's most luxurious hotels, owns four operational hotels: Four Seasons Cairo at Nile Plaza, Kempinski Nile Hotel Cairo, Four Seasons Sharm El-Sheikh and Four Seasons Alexandria at San Stefano.
These agreements embody massive direct foreign investments in Egypt and reflect investors' confidence in the Egyptian tourism and hospitality sector.
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