Orascom Development Egypt (ODE) said Thomas Cook’s bankruptcy has an “immaterial” effect on the former company’s operations, yet the short-term impact is “minimal,” Invest-Gate reports.

Alongside its associated UK entities, Thomas Cook UK, a 178-year-old British travel firm, “has entered compulsory liquidation and are now under the control of the official receiver,” it announced in an official statement on Septemeber 23.

On the impact of Thomas Cook’s bankruptcy, ODE said, “We do not foresee a big impact as our operations will fill the hotels’ rooms up with other tour operators. It is important to mention that the agreement with Thomas Cook constitutes only 244 rooms out of Orascom Development portfolio of 7,082 rooms so the short term impact is excepted to be minimal.”

“There is no shareholding interest or ownership in the hotels, which are under Orascom Development operations and franchised under a franchise agreement … ODE will ensure that the hotels are well commercialized and the company’s return on investment is in line with the company’s projections and budget,” read the statement.

Earlier in December 2018, ODE through its hotel subsidiary Orascom Hotels Management (OHM) signed an agreement with Thomas Cook to rebrand Arena Inn, El Gouna’s 144-room hotel, to become a Cook’s Club hotel and develop the new 100-room Casa Cook hotel.

Cook’s Club was opened in mid-August 2019, while Casa Cook hotel is planned to open at the end of next October.

Thomas Cook represents only 1.4% of El Gouna hotels’ revenues business, which is 1.2% of ODE hotels’ revenue business and 0.8% of revenue business of Orascom Development Holding’s hotels.