EGYPT SET TO FINALIZE SALE OF HISTORIC HOTELS, INCLUDING THE CATARACT AND WINTER, BY YEAR-END. IT IS SIGNALING ECONOMIC OPTIMISM AND A SHIFT TOWARDS PRIVATE SECTOR INVOLVEMENT IN THE THRIVING TOURISM INDUSTRY.
In a recent announcement, Ayman Soliman, head of the Sovereign Fund of Egypt, revealed that the sale of seven historic hotels, including the Cataract in Aswan and the Winter in Luxor, is set to conclude by the year’s end.
Soliman, speaking at the Reuters NEXT conference in New York, disclosed that the deal has been awarded, marking a strategic partnership for a timely closure with the winning investors. The plan includes transforming these historic assets and potentially taking them public.
While the buyer remains undisclosed, earlier reports in June hinted at Qatar’s interest. However, Egypt’s planning minister later confirmed a $700 million stake awarded to a consortium. It is including the local Talaat Mostafa Group Holding Co.
Egypt historic hotels sale: Optimistic Outlook on Tourism and Economy
Soliman expressed optimism regarding Egypt’s economic landscape, asserting that inflation has likely peaked. He highlighted the positive impact of the devalued currency on production costs, providing a favorable environment for economic stability.
Soliman also noted a positive response to asset offerings in Egypt’s hospitality and tourism sector. This aligns with the government’s strategy to privatize and sell state holdings, fostering economic growth.
As Egypt anticipates the release of October inflation figures by the state statistics agency CAPMAS, Soliman remains confident in the country’s economic trajectory. Headline inflation hit an all-time high of 38.0% in September, prompting close scrutiny of economic indicators.
Final words: A Transformative Shift in Egypt’s Hospitality Landscape
The imminent sale of these historic hotels signifies a transformative shift in Egypt’s hospitality landscape. With a strategic vision to enhance these assets and potentially take them public, the outcome promises economic growth and increased private sector participation in the vibrant tourism sector.