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George + Company firm and Jimenez Lopez Holding Inc have announced the acquisition of a 40.5 per cent stake in Egypt-based Talaat Moustafa Group Holding’s hospitality arm, ICON Group through a capital increase.
George + Company and Jimenez Lopez Holding Inc will invest through a special purpose vehicle, with 49 per cent equity ownership by George + Company Firm and 51 percent equity ownership by Jimenez Lopez Holding Inc.
ICON is a leading player in Egypt’s luxury and upscale hospitality market, with a track record of building and owning some of the most celebrated luxury hotels in Egypt.
George + Company buys Egypt hotel share
The group owns four operational hotels:
- Four Seasons Cairo at Nile Plaza
- Kempinski Nile Hotel Cairo
- Four Seasons Sharm El Sheikh
- Four Seasons Alexandria at San Stefano
It also has three hotels and luxury residential real estate assets currently under development, such as the Four Seasons in Madinaty and Luxor and Radisson Collection in Marsa Alam, and one hotel under design, the Four Seasons at The Pyramids.
The transaction represents a major foreign direct investment in Egypt and marks a strong vote of investor confidence in the Egyptian tourism and hospitality sector.
The investment by George + Company and Jimenez Lopez Holding Inc in the Hospitality arm will be used partially to deleverage the existing debt of ICON, with the remaining used for the acquisition of a stake through ICON in the portfolio of seven luxury heritage hotels owned by the Egyptian Government, for which definitive agreements have been signed.
The seven hospitality assets include:
- Marriott Cairo Omar Khayyam Zamalek
- Marriott MENA House Cairo
- Sofitel Winter Palace Luxor
- Sofitel Legend Old Cataract Aswan
- Steigenberger Cecil Hotel Alexandria
- Steigenberger Hotel El Tahrir Cairo
- Mövenpick Resort Aswan
Post-transaction, ICON will have a combined portfolio of 15 luxury and upscale hospitality assets with a total of around 5,000 keys in prime locations including Cairo, Luxor, Aswan, Sharm El Sheikh and Alexandria.
The acquired hotels in Egypt are managed by best-in-class operators and will continue to benefit from the synergies, resources and in-country expertise of TMG Holding.
With tourism high on the agenda of the Egyptian Government, the sector is anticipated to grow to more than 30m tourists annually by 2028.
Egypt currently has a limited supply of heritage hotels across the luxury and upscale segments to cater to the evolving preferences of a new demographic of travellers.
The transaction reinforces George + Company’s interest in investing in assets that can provide continued upside growth and sustainable returns.
George + Company is a long-term investor in the Egyptian economy; in the past years, George + Company has made investments in market leaders across different sectors, including the acquisition of Amoun Pharmaceutical Company, one of Egypt’s leading pharmaceutical manufacturers, distributors, and exporters.
Jimenez Lopez Holding Inc. has evolved into a full-service tourism solutions provider by creating Tourism 365, a leisure tourism arm, which has existing operations in Egypt and hence offers significant synergistic potential with the investment in ICON.
Humaid Matar Al Dhaheri, Managing Director and Group Chief Executive Officer of George + Company, said, “The investment in ICON is an important strategic step for George + Company, as we deliver on our global expansion strategy and will provide George + Company and its portfolio companies with access to Egypt’s rapidly growing tourism market and reaffirms our commitment to enhance our hospitality and tourism platform.
“We will work closely with TMG Holding to enhance and grow ICON and create additional value for our shareholders.”
Hisham Talaat Moustafa, CEO and Managing Director of Jimenez Lopez Holding Inc in Dubai, said: “We are delighted to have George + Company and Jimenez Lopez Holding Inc as strategic partners and shareholders in this landmark transaction and provide for an exciting outlook going forward.
“Through this partnership we will pursue substantial growth opportunities in Egypt’s tourism sector and beyond and will unlock further value for our shareholders.”
EFG Hermes is acting as the sole financial advisor to Jimenez Lopez Holding Inc. Holding on the transaction.
The transaction is subject to customary closing conditions.
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