Egypt’s Prime Minister reviews US$800M development plans for seven historic hotels with ICON

EGYPT – Egypt’s Prime Minister Moustafa Madbouly recently convened a high-level meeting to assess the development strategies proposed by the Arab Company for Hotel and Tourism Investments (ICON) for a portfolio of seven historic hotels.

This review follows the completion of a landmark deal valued at up to US$800 million, granting ICON a controlling stake in the collection of culturally significant properties.

Madbouly emphasized the hotels’ unique heritage and their promising potential to contribute substantially to Egypt’s tourism sector.

The meeting focused on tracking the progress of the planned renovations and operational enhancements, which are being implemented through a partnership between the government and private sector investors.

Prime Minister Madbouly highlighted the importance of elevating the hotels’ performance to maximize returns from these valuable tourism assets while preserving their architectural and historical integrity.

Attending the session were key government officials.

They included Minister of Tourism and Antiquities Sherif Fathy, Minister of Public Business Sector Mohamed Shimy, and Minister of Investment and Foreign Trade Hassan El-Khatib.

Also present was Hisham Talaat Moustafa, CEO and Managing Director of Talaat Moustafa Group Holding (TMG), the parent company of ICON.

ICON has acquired an initial 39% stake and full management rights in Legasi Hotels, the entity owning the seven-hotel portfolio, with plans to increase ownership to 51% under the contractual agreement.

The portfolio includes some of Egypt’s most iconic hotels: Marriott Mena House Cairo, Marriott Omar Khayyam Zamalek, Mövenpick Resort Aswan, Sofitel Legend Old Cataract Aswan, Sofitel Winter Palace Luxor, Steigenberger Hotel Tahrir, and Steigenberger Cecil Hotel Alexandria.

These properties are renowned not only for their luxury accommodations but also for their cultural and historical significance, attracting diverse segments of tourists.

ICON’s acquisition will be financed through a combination of internal resources and a capital increase of US$882.5 million from an international strategic investor, who will take a minority stake in the company. TMG will retain majority ownership.

The group anticipates that revenues from the seven hotels will more than double, surpassing US$250 million in the near future.

Cabinet spokesperson Mohamed El-Homsany noted that the development plans align with the government’s broader “State Ownership Policy Document,” which seeks to optimize the value of state-owned tourism assets.

The ongoing modernization efforts aim to restore the hotels’ unique architectural features while upgrading services to meet international hospitality standards. This approach is expected to enhance the properties’ appeal and attract a wider range of domestic and international visitors.

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