Speech by the Executive Managing Director of the Holding Company for Tourism and Hotels
In the name of Allah, the Most Gracious, the Most Merciful.
The Holding Company for Tourism and Hotels is one of the companies under the Ministry of Investment, overseeing nine subsidiaries categorized as follows:
Five Companies in the Hospitality and Tourism Sector:
1-The Egyptian General Company for Tourism & Hotels (EGOTH)
2-Misr Hotels Company
3-Misr Travel Company
4-Maamoura Company for Development and Tourism
5-Misr Sound, Light & Cinema Company
Four Companies in the Domestic Trade Sector:
1-High Fashion Houses Company
2-Modern Fashion Company
3-Egyptian Manufactured Products Company
4-Sidnawy Clothing and Consumer Products Company
Completion of Development Projects
Despite the financial constraints faced by the Holding Company and its subsidiaries due to low hotel occupancy rates and a decline in international tourism arrivals following January 2011, it was imperative to complete projects with significant investments to safeguard public funds.
Among the major developments and inaugurations:
The Novotel Airport Annex, completed in 2013, with an investment of EGP 95 million.
The Mövenpick Pyramid Annex, completed in 2013, with an investment of EGP 113 million.
The A-Wing Extension of the Mena House Palace, owned by EGOTH, inaugurated in March 2015, with an investment of EGP 60 million, as part of a larger EGP 250 million palace development plan.
The construction of a four-star hotel with 295 rooms and a 12-story administrative building at Tahrir Square, owned by the Holding Company.
The completion of Luxor Hotel, in partnership with EGOTH and the Egyptian Endowments Authority.
The completion of Elephantine Hotel in Aswan, featuring 178 rooms, with an investment of EGP 194 million.
Additionally, the renovation of Shehrazade Hotel was finalized after resolving a 25-year-long dispute with Evadco, the previous lessee. Due to non-compliance with quality standards, the hotel lost its star rating and faced multiple closures.
To address this issue, a tripartite agreement was signed on July 3, 2014, between EGOTH, Evadco, and Horizon Resorts Management, under which:
Horizon paid EGP 6.96 million to settle Evadco’s outstanding debts.
The annual rental fee increased from EGP 1.8 million to EGP 3 million, with a 10% increase from the fourth year onwards.
Horizon committed to renovating the hotel to a three-star standard at an investment of EGP 65 million, without financial burden on EGOTH.
The hotel resumed operations after years of closure, with the investor already injecting EGP 20 million.
Furthermore, Misr Hotels Company completed the full renovation of The Nile Ritz-Carlton, which includes:
The main building with 331 rooms and suites.
A conference hall accommodating 1,100 guests.
A parking garage covering the entire building area.
The grand opening was scheduled for October 2015.
Optimal Utilization of Assets
To maximize asset value, several strategic agreements were signed, including:
A real estate development partnership between EGOTH and Wadi Degla Real Estate Development to develop EGOTH’s Ain Sokhna land and hotel into a four-star hotel with 110 rooms, a health and wellness spa, a tourist residential complex, a commercial center, and restaurants. This project generated EGP 1.3 billion, with a 270% return on land value, significantly contributing to EGOTH’s financial recovery.
A partnership agreement between Misr Sound, Light & Cinema Company and Prism International, the company behind the New Year's Eve celebrations at Burj Khalifa in Dubai. Prism agreed to invest USD 50 million to modernize the Pyramids Sound & Light Show, with a New Year’s Eve event planned at the Pyramids on December 31, 2015.
The construction of the first multimedia fountain in the Middle East and North Africa, utilizing state-of-the-art technology, at Family Park in New Cairo, in collaboration with the National Service Projects Organization of the Armed Forces, with an investment of EGP 14 million.
The Holding Company for Tourism and Hotels and its subsidiaries remain committed to executing development and modernization plans, striving to maximize returns and contribute to Egypt’s economic prosperity.