HOTAC develops Shepherd Hotel with EGP 320m via Ain Sokhna project income: Board Chairman

The Holding Company for Tourism, Hotels and Cinema (HOTAC) will develop the Shepherd Hotel, according to the Chairman of the Board of Directors, Mervat Hataba.

The development will occur using investments of up to EGP 320m, which will be gained through self-financing.

Hataba said the fund comes from the company’s Ain Sokhna project income, adding that HOTAC decided it will self-fund due to lack of available funds. She assured the hotel will be developed into a 4-star hotel.

HOTAC and hotels are negotiating with Rocco Forte to manage the Shepherd Hotel as per the new development plans, said Hataba. She confirmed that the management contract with Rocco Forte is still valid, while they study maintaining management of the hotel as per the new plan.

Hataba added the company was originally planning to develop the Shepherd into a 5-star hotel, with a cost of EGP 470m. The high costs and lack of foreign funds, however, obligated it to develop the hotel according to 4-stars instead, at a total cost of EGP 320m.

HOTAC gave Rocco Forte until the end of February to study the market, Hataba said.