Prominent Egyptian real estate developer, Talaat Mostafa Group (TMG), has finalised the acquisition of a majority equity stake of 51 percent in seven state-owned hotels, according to a disclosure statement made by TMG to the Egyptian Exchange.

The acquisition deal, initially announced in July 2023, grants TMG, through its hospitality arm ICON, full management rights and an increased capital in Legacy Hospitality Company, which owns the hotels.

TMG confirmed that the agreed-upon deposit for the transaction has been transferred to an escrow account in the Egyptian banking sector, to be subsequently transferred to Legacy Hospitality, as per the statement.

This acquisition significantly expands TMG's hotel room portfolio in Egypt, adding 2,500 rooms. With the inclusion of these hotels, ICON's total number of owned and planned rooms will reach 5,000, solidifying TMG's position as the largest luxury hospitality platform in the country.

The seven hotels acquired by ICON include iconic establishments such as Sofitel Legend Old Cataract Aswan, Mövenpick Resort Aswan and Marriott Omar Khayyam Zamalek.

The company anticipates that the acquisition will double the USD revenues of ICON's owned hotels in 2024, surpassing USD 250 million, with further revenue growth expected from planned renovations, commercial strategy enhancements and the opening of new ICON hotels.