The Holding Company for Tourism, Hotels and Cinema (HOTAC) will develop the Shepherd Hotel, according to the Chairman of the Board of Directors, Mervat Hataba.
The development will occur using investments of up to EGP 320m, which will be gained through self-financing.
Hataba said the fund comes from the company’s Ain Sokhna project income, adding that HOTAC decided it will self-fund due to lack of available funds. She assured the hotel will be developed into a 4-star hotel.
HOTAC and hotels are negotiating with Rocco Forte to manage the Shepherd Hotel as per the new development plans, said Hataba. She confirmed that the management contract with Rocco Forte is still valid, while they study maintaining management of the hotel as per the new plan.
Hataba added the company was originally planning to develop the Shepherd into a 5-star hotel, with a cost of EGP 470m. The high costs and lack of foreign funds, however, obligated it to develop the hotel according to 4-stars instead, at a total cost of EGP 320m.
HOTAC gave Rocco Forte until the end of February to study the market, Hataba said.
The chairman believes the company does not have a problem with Rocco Forte regarding the hotel’s management, adding that HOTAC plans to sign contracts with major international hotel management companies to attract them Egypt.
The Shepherd Hotel is owned by the Egyptian General Company for Tourism and Hotels (EGOTH), one of the companies affiliated to HOTAC.
EGOTH plans to develop Shepherd Hotel in Downtown Cairo at the start of 2016, according to EGOTH Chairman, Samir Hassan Suleiman. Suleiman said the company is designing the hotel through a specialised engineering company.
HOTAC sent the projects to the Ministry of Investment to be implemented and to be presented in the March Economic Summit in Sharm El-Sheikh, according to Hataba.
The company sent three project proposals with a total investment cost of EGP 1.5bn, of which EGP 1.2bn will be for entertainment, tourist housing units as well as a shopping mall in Magawish, Hurghada, a light and sound project with total investments at EGP 213m, and housing units in Ibrahimia, Alexandria, with a cost of EGP 180m.
HOTAC, which is affiliated with the Ministry of Investment, owns a number of hotels in several areas in Egypt, including Cairo, Alexandria, Luxor, Aswan, Giza, South Sinai, and Suez.