Al-Sharif Holding Group has signed a long-term financing agreement with the National Bank of Egypt (NBE) for approximately $62.5m (EGP978.2m) loan to upgrade the Shepherd Hotel in Egypt.

The loan, which carries an interest rate of 8%, will go towards funding the total cost of renovation of $89.5m (EGP1.4bn).

Al-Sharif Group first vice-president Hussein Al-Nattai was quoted by Daily News Egypt said: “These facilities are the beginning of new fruitful business relations with the NBE. We have great confidence in the success of this project to be a distinguished tourist destination to attract the public from all over the world.”

The hotel management process will be entrusted to a global five-star management company.

Renovation and upgrade works of the hotel is expected to take 42 months. The works involve modernisation of all services and facilities. The hotel’s capacity will be increased from 260 rooms to 316 rooms.

The hotel is expected to open by the end of 2024.

In March 2020, Al-Sharif Holding Group had also signed a development contract with EGOTH.

As per the terms of this contract, Al-Sharif will be responsible for financing the total development of the hotel, and will be required to have a 75% dependence on domestic products.

Originally located in Azbakeya, Cairo, the Shepherd Hotel is one of the oldest hotels in Egypt.

The hotel was destroyed in a fire in January 1951. The government rebuilt the hotel in the upmarket district of Garden City.

The present hotel, which was opened in 1957, overlooks the Nile River.