For the purpose of boosting the economy and attracting foreign investment, international companies are valuing Egypt’s state-owned hotels ahead of the government’s sale of stakes to strategic investors.
International companies value Egypt’s state-owned hotels before the government sells stakes to strategic investors, according to the country’s public enterprise sector minister, Mahmoud Esmat.
The move comes as the war in Ukraine prompted foreign investors to withdraw from Egyptian financial markets. The new company, established with a capital of EGP10m ($326,700), includes holding companies in the tourism and hotels sector and the Egyptian General Company for Tourism and Hotels, to transfer government-owned hotels to it.
The Sovereign Fund of Egypt is marketing the hotels and offering 20% of assets to strategic investors, along with stakes in the stock market. The hotels include the Cairo Marriott, Sofitel Legend Old Cataract in Aswan, Marriott Mena House, Sofitel Winter Palace Luxor, Steigenberger Cecil Alexandria, Mövenpick Aswan, and “Elephantine” Aswan. The move forms part of Egypt’s plans to boost economic growth and attract foreign investment.
To summarize, Egyptian Government is deliberately assessing and selling holdings in state-owned hotels in order to attract international investment and encourage economic growth. This action, motivated by global economic issues such as investor withdrawals as a result of the Ukraine conflict, involves the formation of a new business with a capital of EGP10 million.
As part of Egypt’s commitment to revitalizing its tourist sector and increasing its worldwide competitiveness, it provides 20% of hotel assets to strategic investors, including iconic businesses. This project is consistent with Egypt’s broader economic growth goals.
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