Egypt to offer 30% stake in 7 state-run hotels to GCC funds within 2 months

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The Sovereign Fund of Egypt (TSFE) is set to offer a 30% stake in the holding company owning seven hotels for Gulf funds and investors in the first quarter (Q1) of this year, two unnamed sources familiar with the matter told Asharq Business on January 24th.

The hotels are Cairo Marriott Hotel, Sofitel Legend Old Cataract in Aswan, Marriott Mena House, Sofitel Winter Palace Luxor, Steigenberger Cecil Alexandria, Mövenpick Aswan, and “Elephantine” Aswan, according to the sources.

One of the sources said that TSFE is undergoing the final stage of the pre-IPO evaluation, noting that Saudi Public Investment Fund (PIF) is among the GCC investors interested in the offering.

In May 2022, Prime minister Mostafa Madbouly announced that government works on merging 7 state-run hotels under the umbrella of one company to pave the way for offering them on the stock exchange or to investors, as well as merging the 7 largest ports under one entity in preparation for offering them as well.

Egypt seeks to enhance the participation of the private sector to accelerate the pace of economic growth, by offering government companies on the Egyptian Exchange (EGX), and through direct partnerships in projects and holding companies with major investors.