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Abu Dhabi Tourism Investment Company (ADTIC), majority-owned by the UAE-based Abu Dhabi Development Fund (ADFD), is investing $161 million in hotel projects in Egypt.
The projects include the renovation of existing properties, ADTIC's CEO Yahya Kotub told Zawya Projects.
He said the company has allocated around $81 million to renovate two hotels in Sharm El Sheikh and Hurghada.
"A Mövenpick Hotel in Sharm El Sheikh is being renovated at a cost of approximately $41 million. The project is expected to be completed by the end of December 2024."
The renovated hotel will feature a total of 298 rooms, he said.
Kotub also disclosed plans for the expansion of another hotel in Sharm El Sheikh following the completion of its ongoing renovation. The expansion phase will include the addition of 120 rooms.
In Hurghada, the company is investing around $40 million to renovate a hotel, which will likely be rebranded as Mövenpick.
"The renovation works are in progress, and the hotel is slated to commence operations in early April 2024. It will offer approximately 469 rooms," Kotub said.
In Hurghada, ADTIC is also studying the development of a hotel on adjacent land, with a decision expected by the end of the next quarter.
ADTIC has finalised plans to re-develop a hotel with views of the Giza Pyramids and the Grand Egyptian Museum at a total investment of $80 million.
"A British company is redesigning the five-star hotel. Construction is scheduled to start in April 2024, and the hotel is expected to open in August 2026," the ADTIC CEO said, adding that Accor will operate the hotel under the Sofitel brand.
Moreover, ADTIC intends to develop a hotel project on the land adjacent to the Mövenpick Hotel in Sharm El Sheikh, which it owns.
"The tourist hotel will be executed in partnership with another entity," he said without naming the company.
Kotub mentioned that ADTIC is appointing a consultant to develop a strategic investment plan for the next five years.
He said the company plans to add new hotels in emerging tourist destinations like Aswan, Marsa Alam, the North Coast, the New Administrative Capital, New Cairo and Downtown Cairo. Additionally, ADTIC will also evaluate acquisitions of restaurants and hospitality companies.
ADFD owns an 84 percent stake in ADTIC, with Abu Dhabi National Hotels Company holding a 10 percent stake. The remaining shares are divided among tourism and hotel companies affiliated with the Egyptian Ministry of Public Business Sector.
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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