Egypt to sell stakes in 7 state-owned hotels to Gulf

Egyptian media reported that the government is set to sell 20-30 per cent stakes in seven state-owned hotels to investors, most of whom are potentially coming from the Arab Gulf region, amid a severe economic crisis.

Habi newspaper quoted the Managing Director of the Holding Company for Tourism and Hotels (HOTAC), Adel Wali, as saying that the government is seeking to offer shares through a newly established holding company that will own a portfolio of seven five-star hotels.

He added that the procedures for establishing the new company have now been completed, revealing that the Sovereign Fund of Egypt will manage the hotel offerings and evaluate and appoint consultants.

According to Wali, the seven hotels include the Cairo Marriott Hotel in Zamalek and the Marriott Mena House next to the pyramids complex.

The names of the other five hotels have not yet been confirmed, but the former Minister of Public Enterprises, Hisham Tawfik, said last year that the stakes into the Cataract Hotel in Aswan and the Steigenberger Cecil Hotel in Alexandria would be sold in addition to the two Marriott hotels.

This forms part of the country’s effort to expand the ownership base and attract foreign investments at a time when the country is suffering from a lack of hard currency.

READ: Egypt plans to float 32 public companies, including 2 owned by the army