Talaat Mostafa Group (TMG) Holding’s unit, the Arab Company for Hotel & Tourism Investment (ICON), has inked an agreement with the Egyptian General Company for Tourism and Hotels (EGOTH) to establish a five-star hotel on Sultana Malak land in Luxor, Invest-Gate reports.

Under the deal, ICON will develop the hotel with total investments of EGP 1.5 bn according to a press release published on February 18. The new development will feature 200 rooms and suites, as well as restaurants, meeting rooms, a gym, and a spa amongst other facilities. 

TMG highlighted that the hotel marks a valuable addition to the tourism sector, and to Luxor in specific, since it will increase tourist flow and employment.

As per the agreement, EGOTH will provide and retain ownership of the hotel’s land, while TMG will own the building under a revenue-sharing model, the statement added.

Extending over 21,400 square meters, Sultana Malak land is owned by EGOTH, an affiliate to the Ministry of Public Enterprise Sector.

In 2008, ICON has signed a concession rights agreement for Sultana Malak land in Luxor for a period of 50 years, which is renewable for an additional 50 years.