Monday 23 May 2022
I wrote – Shaima Hefzy:
Hisham Tawfiq, Minister of Public Business Sector, said that the ministry will establish a new company to include affiliated hotels under this company in preparation for a partnership with sovereign funds.
And Prime Minister Mostafa Madbouly had said last week that a number of government hotels would be merged in preparation for an offering on the stock exchange, to expand the governance of government institutions.
The minister explained, in response to a question by Masrawy, during a conference of the French Chamber of Commerce and Industry in Egypt, today, Monday, that “the ownership of the hotel assets will be transferred from the Egyptian General Company for Tourism and Hotels “EGOTH” or the Holding Company for Tourism and Hotels and we will place them in a project company 100% owned by the government. After that, a share of this company will be sold to sovereign funds.”
He added, “Investors will not buy a hotel by itself, but the investor will own a stake in the company that owns the hotels, and they can follow up on their investments, and EGOTH will manage the new company, while the assets and hotels will be managed by international management companies, which is a reality currently, such as the Marriott Hotel.”
The Holding Company for Tourism and Hotels, through the companies (EGOTH and Misr Hotels), owns a number of hotels, including the Cairo Marriott, the Nile Ritz-Carlton, Steigenberger El Haram and others.
The minister said that the percentage of ownership offered to sovereign funds is currently being negotiated, and no percentage or minimum has been set.
And the Sovereign Wealth Fund “Holding” (ADQ), owned by the Abu Dhabi government, last month bought stakes in 5 companies listed on the Egyptian Stock Exchange with a total value of about $1.88 billion.