Egyptian General Company for Tourism & Hotels (EGOTH) has inked an investment deal worth EGP 1.4 bn with the Saudi Al-Sharif Group for Contracting, Trading and Development Holding (ASG) to renovate Shepheard Hotel, Invest-Gate reports.

Under the agreement, ASG is to finance the complete renovation plan for the hotel within 42 months, including obtaining the licenses, according to the cabinet’s statement on March 10. The deal extends to 35 years, where ASG gets 69% of net profit for the first ten years, then 60% till the end of the contract.

EGOTH will receive USD 1 mn (EGP 15.75 mn) as a contracting grant/ upfront payment. Furthermore, a settlement will be conducted with the Italian company “Rocco Forte,” in order to open the door for international hotel management companies to operate Shepheard Hotel.

Noteworthy, Shepheard Hotel spans over 3,198 square meters and consists of 316 rooms and suites. EGOTH closed the hotel in 2013 to conduct the first phase of hotel renovations, which were finalized in December 2018 at a total cost of EGP 189 mn, the statement adds.