As part of the move to bolster its strategic portfolio, Talaat Moustafa Group (TMG), led by Egyptian tycoon Hisham Talaat Moustafa, has successfully concluded negotiations for the acquisition and full management rights of a substantial 39-percent stake in Legacy Hotels.
The official announcement conveyed through a cabinet statement, unveiled the deal’s finalization, with key signatures from Moustafa, Ayman Soliman, CEO of The Sovereign Fund of Egypt (TSFE), and the executive director of the Egyptian General Company for Tourism and Hotels (EGOTH).
TMG’s $800-million deal: ICON’s majority stake paves way for unprecedented growth
This latest triumph comes on the heels of TMG’s trailblazing partnership with Saudi Arabia’s National Housing Company (NHC) for the ambitious $10.7 billion Banan City project — the venture solidifies TMG’s global presence and positions it as a frontrunner in groundbreaking smart residential developments.
Facilitated through one of TMG’s subsidiaries, the Arab Company for Tourism and Hotels Investments (ICON), the deal is valued at $800 million. ICON is set to achieve majority ownership with a 51-percent stake, and internal resources will finance the substantial transaction — estimates indicate that ICON’s consolidated revenues from hotels are poised for a remarkable twofold increase, exceeding $250 million in the fiscal year 2024.
TMG’s ICON deal: Reinforcing dominance in Egypt’s tourism, unveiling opportunities in shifting landscape
Founded in 1974, TMG, under Moustafa’s visionary leadership, has become a top player in Egypt’s real estate landscape. With a 43.16-percent stake, Moustafa is a key figure in the North African real estate market.
Reflecting the success of TMG’s strategic vision, the company reported a profit of EGP1.55 billion ($50.3 million) in the first half of 2023, marking an impressive surge of 43.5 percent from EGP1.08 billion ($35.05 million) during the same period in 2022.
The latest deal not only solidifies TMG’s position in Egypt’s tourism and hospitality sector but also underscores the continued appeal of the region to international investors. As the global tourism industry undergoes transformative shifts, ICON is strategically positioned to capitalize on emerging opportunities — heralding an exciting chapter in Egypt’s hospitality sector.