Egyptian leading developer TMG finalizes $882 mln deal to acquire seven state-owned historic hotels

The deal gives management rights to ICON and increases its stake in Legacy’s capital to 51 percent within a time frame that has not been announced.

Mostafa announced that the deal will generate $800 million for the government to upgrade the acquired hotels and maximize their profits.

Legacy is a joint venture between The Sovereign Fund of Egypt (TSFE) and the Egyptian General Company For Tourism and Hotels (EGOTH).

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

The deal is part of a broader plan by the Egyptian government to offer stakes in 35 state-owned companies to strategic investors by the end of June 2024 under the State Ownership Policy Document. 

A list of 32 companies was released in February 2023, to which three companies -- Eastern Company, Al Ezz Dekhila, and Telecom Egypt -- were added later this year.