Saudi's Al-Sharif group awards $16mln Shepheard Hotel redevelopment contract to SIAC Contracting

Egypt's Al-Sharif Hotels and Tourism Company (ASH), a subsidiary of Saudi Arabia-based Al Sharif Group Holding (ASG), has awarded a 500 million Egyptian pound ($16.4 million) contract to local contractor SIAC Construction to renovate and develop the historic Shepheard Hotel in Downtown Cairo.  

CEO Al Sharif Nawaf Faiez Al Abdelhakim told Zawya Projects that ASG was awarded the concession to redevelop the hotel by the Egyptian General Company for Tourism and Hotels (EGOTH) in 2020.

He said the investment required for the hotel's redevelopment into a modern five-star property had been estimated at EGP1.4 billion ($46 million).

"The duration of the contract is 35 years, during which the Saudi investor will receive 69 percent of the net operating profit for 10 years; and 60 percent after that until the end of the contract period," he disclosed. 

He said the scope of the contract with SIAC includes the following:

• Excavation work.


• Rehabilitation of the main hotel building.


• The construction of a 14-storey annexe behind the main hotel building on an area of 1,000 square metres with a four-level underground parking facility.

Adel Wali, Executive Managing Director of Holding Company for Tourism and Hotels (HOTAC), the parent company of EGOTH, said the cooperation with ASG comes within the framework of Egypt's plan to revive existing hospitality assets while preserving their historic character and cultural value. 

In March 2022, the Hong Kong-based Mandarin Oriental Hotel Group announced the signing of a management agreement with ASG to rebrand the Shepheard Hotel as Mandarin Oriental Shepheard when it opens its doors in 2024.

ASH has carried out several works related to the project, including dewatering, electrical works for underground parking, the construction of concrete walls lined with a depth of 23 meters, the addition of 90 concrete foundations to distribute the load on the main building, renovations within the main building, and the renovation of the swimming pools.

Companies working on the project include Paris-based interior designer, Sybille de Margerie, mandated to preserve the building's heritage design while enhancing facilities and services; Silver Fox to design restaurants and cafes; Engineering Consultant Office (ECO) as structural consultant; Rafaar Miller Consulting (RMC) as architectural and MEP consultant; Hill InternationalNorth Africa as Project Management Consultant, Al-Sharif Contracting (ASC) as electrical contractor; DPA Lighting Consultants for lighting design; and Al Amar Consulting as owner's representative.