Palm Hills expands stake in Egypt’s hospitality sector with Macor Hotels deal

Feyisayo Ajayi -

Key Points

  • Palm Hills boosts its hospitality presence, raising its stake in Macor Hotels to 69.5% through a $3.57 million acquisition in Egypt's tourism sector.
  • Palm Hills expands into education, acquiring Yasseen Mansour’s shares in Taaleem Management Services for $37.99 million to meet rising demand.
  • Palm Hills announces a capital reduction plan, cutting treasury shares to optimize its balance sheet and enhance shareholder value amidst strategic growth.

Palm Hills Developments, a key player in Egypt’s real estate landscape led by billionaire Yasseen Mansour, has strengthened its hold in Egypt’s hospitality sector with the acquisition of an additional 9.5 percent stake in Macor Hotels.

The transaction, approved by shareholders during the Ordinary General Assembly on Nov. 4, 2024, increases Palm Hills’ stake in Macor Hotels from 60 percent to 69.5 percent. Valued at EGP175.58 million ($3.57 million), the acquisition consolidates the company’s position in the growing tourism market, as Egypt seeks to attract foreign investment and international tourism.

The purchase involved 9,069 shares acquired from Mansour & Maghraby Investment, priced at EGP19,360 ($393.32) per share. The move is in line with Palm Hills’ vision of expanding its footprint in Egypt's hospitality sector, which has seen a surge in demand due to government efforts to boost tourism and promote new developments along the Red Sea coast and the Nile.

Broader expansion into education sector

In a parallel development, Palm Hills also obtained shareholder approval to acquire Yasseen Mansour’s entire holding in Taaleem Management Services, a leading education provider in Egypt.

The acquisition involves 216,112,769 shares, valued at EGP1.87 billion ($37.99 million), with a per-share price of EGP 8.65 ($0.176).

This move marks Palm Hills’ foray into Egypt’s burgeoning private education sector, where demand for high-quality institutions continues to rise.

This diversification supports Palm Hills’ commitment to creating a multi-sector portfolio, tapping into Egypt’s demand for education infrastructure. The acquisition also positions Palm Hills to address a demographic shift that sees more families seeking quality educational services.

Capital restructuring initiative to strengthen financial position

In addition to these acquisitions, Palm Hills announced a capital reduction plan aimed at optimizing its balance sheet and increasing shareholder value.

Approved on the same day, the firm will reduce its capital by EGP 123.36 million ($2.51 million) through the cancellation of 61.68 million treasury shares.

This restructuring will bring Palm Hills’ issued capital to EGP 5.76 billion ($117 million), aligning with regulatory requirements and enhancing the firm’s overall financial health.

Palm Hills’ focus on strategic capital management comes as it seeks to position itself for long-term growth amid Egypt’s evolving real estate and hospitality sectors.

Record growth in 2024 financial performance

Under Yasseen Mansour’s leadership, Palm Hills has posted impressive financial results in 2024, underscoring its market resilience and growth trajectory.

For the first half of the year, Palm Hills recorded a 58 percent increase in revenues, reaching EGP10.94 billion ($225 million), compared to EGP6.92 billion ($142.6 million) in the same period last year.

The revenue surge is largely attributed to robust unit sales and timely project handovers across Egypt’s prime real estate markets.

The company’s asset base grew by 27.9 percent, reaching EGP 95.03 billion ($1.96 billion) by mid-2024, positioning Palm Hills among Egypt’s largest real estate conglomerates.

With a 10.17 percent stake, Mansour leverages his expertise from the Mansour Group, one of Egypt’s largest private sector conglomerates, driving Palm Hills’ ambitious expansion and diversification efforts.