22 November 2018
Egypt's Holding Company for Tourism and Hotels (HOTAC) is talking to private investors to redevelop existing hotel properties as well as develop its unused land across the country, the company Chairperson has said.
Mervat Hataba told Thomson Reuters Projects that the state-owned company plans to partner with the private sector to develop tourism as well as residential, administrative and commercial real estate projects in different parts of the country,
She said the company has started accepting bids from investors for developing a tourism project on 850,000 square metres of land in Sharm El-Sheikh split equally between hotels and usufruct-based luxury tourist accommodation.
The project would be developed over a three-year period at an estimated cost of 3 billion Egyptian pounds ($167.04 million), she said.
HOTAC is also planning to launch three floating hotels between Luxor and Aswan for which the "process of receiving technical offers" is currently underway, she disclosed.
Hataba said HOTAC had joined hands with a private investor, whom she declined to name, to set up Shepheard Development Company to redevelop and rehabilitate the landmark Shepheard Hotel in Cairo at an estimated cost of 2.3 billion pounds ($128.07 million).
The JV, which is 51 percent owned by the private investor and 49 percent by HOTAC, will partner with the hotel's present owner and HOTAC subsidiary EGOTH (Egyptian General Company for Tourism and Hotels) to take the project forward, she noted.
"The financial envelope for the project will be opened early next month, and the development work is expected to last for two and a half years," she said.
The company is in the final stage of negotiations with investors for the re-development and management of the three-star Cosmopolitan Hotel in central Cairo, the HOTAC chief said, adding that the project would be executed over a period of one and a half years.
In June 2018, local Arabic language newspaper Youm 7 reported that Egypt's Minister of Public Enterprises Hisham Tawfiq had instructed state-owned holding companies to maximise the utilisation of their subsidiaries' real estate and unused assets to take them public in the future.
(Reporting by Eman Hamed; Editing by Anoop Menon)
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