Talaat Moustafa Group (TMG) announced that its hospitality arm, Icon, has acquired a 51% majority stake and full management rights in Legacy Hotels, through a capital increase. Icon transferred the agreed amount to a reserved account in the Egyptian banking sector, and it will be transferred to Legacy Hotels after completing the capital increase procedures and conditions.
This deal will increase TMG’s hotel room capacity by 2,500 rooms in Egypt, bringing Icon’s total number of rooms to 5,000.
Legacy Hotels owns 7 hotels in Egypt, which are Sofitel Legend Old Cataract Aswan, Mövenpick Resort Aswan, Sofitel Winter Palace Luxor, Steigenberger Tahrir Hotel, Steigenberger Cecil Hotel Alexandria, Marriott Mena House Cairo, and Marriott Omar Khayyam Zamalek. These hotels were previously owned by the Egyptian General Company for Tourism and Hotels (EGOTH).
ADQ, an Abu Dhabi-based investment and holding company, and ADNEC Group signed the final agreements for the strategic acquisition of a 40.5% stake in Icon Group, through a capital increase. The two companies will invest through a special purpose entity, with ADQ holding 49% and ADNEC holding 51%.
Icon is a leading company in the luxury hotel market in Egypt, with a track record of building and owning some of the most prestigious hotels in the country.
The group operates four hotels: Four Seasons Hotel Cairo Nile Plaza, Kempinski Nile Hotel Cairo, Four Seasons Resort Sharm El Sheikh, and Four Seasons Hotel Alexandria San Stefano.
The group is also developing three hotels and luxury residential properties: Four Seasons Hotel in Madinaty and Luxor projects, Radisson Collection hotel in Marsa Alam, and one hotel under design – the Four Seasons at the Pyramids.
This contract is one of the most important foreign direct investments in Egypt, and it reflects the confidence of investors in the future of the Egyptian tourism and hospitality sector.