Talaat Moustafa Group (TMG) Holding’s hospitality arm, ICON, has finalized the acquisition of a majority equity stake of 51% with full management rights in Legacy Hospitality Company, representing a portfolio of seven distinctive hotels across Egypt, Invest-Gate reports.
The acquisition, achieved through a capital increase, marks a significant expansion in TMG Holding’s operational hotel room base, adding 2,500 keys and bringing the total number of owned and developed keys by ICON to 5,000, solidifying its position as Egypt’s largest luxury hospitality platform.
Moreover, Legacy Hospitality boasts a collection of renowned properties, including 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.
Furthermore, this strategic move aligns with TMG Holding’s objective of maximizing recurring income activities, bolstering foreign currency resources, and creating additional liquidity for future dividends or reinvestment in quality assets.
Also, by leveraging its expertise in managing large-scale hospitality portfolios, TMG aims to enhance operational efficiency, attract higher-quality tourism, and increase revenues by upgrading and modernizing these heritage properties.
Notably, the acquisition is projected to more than double ICON’s consolidated hotel US dollar revenues in 2024 to over $250 mn, generating substantial shareholder value and benefiting Egypt’s lodging industry in the long run.