Egypt’s real estate developer Talaat Moustafa Group (TMG) has teamed with Emirati ADNEC Group to acquire significant interest and management rights in seven state-owned hotels in Egypt, reported Daily News Egypt, citing sources.

TMG’s subsidiary Arab Company for Tourism and Hotels Investments (ICON) has made this offer to acquire the significant stake in the portfolio of seven hotels. TMG holds 83.3% stake in ICON.

The portfolio of seven hotels is owned by the Egyptian General Company For Tourism and Hotels (EGOTH).

These hotels are namely Marriott Mena House Cairo, Marriott Omar Khayyam Zamalek, Mövenpick Resort Aswan, Sofitel Legend Old Cataract Aswan, Sofitel Winter Palace Luxor, Steigenberger Hotel Tahrir and Steigenberger Cecil Hotel Alexandria.

The investors plan to inject $700m (E£21.7bn) to boost the capital in EGOTH by 37%.

The investment is expected to be injected as soon as the procedures associated with the final signing are completed within less than two months.

This deal would be in line with TMG’s plan to become a major player in the luxury hotel sector in Egypt.

Following the completion of the deal, ICON portfolio will touch 15 hotels, having hotel rooms of more than 5,000, including of those projects under development.

TMG aims to develop and modernise the portfolio of seven hotels to boost their operational efficiency.

EFG-Hermes is serving as a financial advisor to TMG for the acquisition, while Maatouk Bassiouni and Hinnawi are acting as legal advisor to Emirati ADNEC Group.