ICON, a subsidiary of Talaat Moustafa Group (TMG), has signed the final agreements to acquire a 39% stake and full management rights in Legacy Hotels, a new company that owns a unique and large portfolio of seven historic hotels in Egypt, Invest-Gate reports.
The stake will increase to 51% within a specified period according to the contractual timeline. The deal value is $800 mn, which will be reached when the ownership percentage reaches 51% in Legacy Hotels.
The deal will be financed through the internal resources of ICON, along with a capital increase of $882.5 mn by a well-known international strategic investor who will acquire a minority stake in Icon after restructuring. TMG will retain the majority stake.
TMG Holding expects the revenues of its portfolio of seven historic hotels, in which it acquired a significant stake, to double and exceed $250 mn by 2024.
These hotels are Marriott Mena House Cairo, Marriott Omar Khayyam Zamalek, Mövenpick Resort Aswan, Sofitel Legend Old Cataract Aswan, Sofitel Winter Palace Luxor, Steigenberger Hotel Tahrir, and Steigenberger Cecil Hotel Alexandria.
Legacy Hotels was previously owned by the Egyptian General Company for Tourism and Hotels (EGOTH). Legacy Hotels is a joint venture between the Egyptian Subsidiary Fund for Tourism, Real Estate Investment, and Development of Antiquities, and EGOTH.
The final subscription agreement was signed in the presence of Prime Minister Mostafa Madbouly, Minister of Planning and Economic Development and Chairperson of The Sovereign Fund of Egypt (TSFE) Hala El-Said, and Minister of Public Enterprise Sector Mahmoud Essmat.
The signing took place between TMG, represented by its CEO and Managing Director Hisham Talaat Moustafa, EGOTH, represented by its Executive Managing Director, and TSFE, represented by its CEO Ayman Soliman.
