ICON’s total number of owned and to-be-developed rooms is expected to reach 5,000. Credit: Photo Mix from Pixabay.

Egyptian real estate developer Talaat Mostafa Group (TMG) has finalised the acquisition of a 51% equity stake with full management rights in seven state-owned hotels.

This move was facilitated through TMG’s hospitality division, ICON, which will also oversee an increase in the capital of Legacy Hospitality Company, the current owner of the hotels.

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The properties involved in this transaction are the Sofitel Legend Old Cataract Aswan, Mövenpick Resort Aswan, Steigenberger Hotel Tahrir, Marriott Omar Khayyam Zamalek, Steigenberger Cecil Hotel Alexandria, Marriott Mena House Cairo, and Sofitel Winter Palace Luxor.

Announced last year, the acquisition has progressed with TMG transferring the agreed deposit into an escrow account within the Egyptian banking sector, earmarked for Legacy Hospitality.

This deal is expected to significantly bolster TMG’s presence in the Egyptian luxury hotel market, adding 2,500 rooms to its portfolio.

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With the addition of these new properties, ICON’s total number of owned and to-be-developed rooms will reach 5,000.

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In a disclosure statement to the Egyptian Exchange, TMG said: “The acquisition is in line with the group’s strategy to maximise the recurring income activities for the company in the medium term, boosting its foreign currency resources, as well as creating additional spare liquidity for future dividend pay-outs and/or reinvestment in quality recurring income assets.”

Egypt is embarking on a privatisation initiative, aimed at bolstering the participation of the private sector in economic endeavours and drawing foreign currency inflows, reported Ahram Online.