Egypt is moving its most iconic state-owned hotels under the Sovereign Fund of Egypt in a bid to accelerate foreign investment and unlock higher returns from tourism assets, a senior government official tells EnterpriseAM. The assets, currently overseen by the Holding Company for Tourism and the former Public Business Sector Ministry, will be transferred after the ministry was dissolved.

Under the new structure, the Sovereign Fund will take the lead on investment and redevelopment across a string of landmark properties, including the redevelopment of the Nile Ritz-Carlton, the historic InterContinental Cairo Semiramis — which recently secured an Indian partner — Shepheard, Hoteck, Steigenberger El Lessan, Nefertari Abu Simbel, and Four Seasons Luxor, along with other major state-owned hotel brands. Ongoing development and efficiency upgrades will continue uninterrupted, with the focus squarely on maximizing long-term asset value rather than pausing projects, our source tells us.

Why it matters: Centralizing these assets under the fund is expected to speed up investment decisions and make partnerships with foreign and private operators easier to structure, we’re told. The full plan is expected to be finalized before the end of the first half of the year as part of a broader push to strengthen returns on public assets while reinforcing tourism growth and foreign-currency inflows.

Select assets may also be deployed within a broader debt-swap framework to reduce cross-government debt, the source added. The mechanism would see assets exchanged between holding companies and other state entities to reduce accumulated debts and strengthen balance sheets, while advancing restructuring efforts without adding new fiscal burdens.

This isn’t the first time we hear of the government monetizing its hospitality portfolio. The government sold seven historic hotels to Talaat Moustafa Group’s Icon back in 2024, including the Cairo Marriott in Zamalek, Marriott Mena House by the Pyramids, Steigenberger El Tahrir and Steigenberger Cecil, Sofitel Legend Old Cataract in Aswan, Mövenpick Aswan, and Sofitel Winter Palace in Luxor.

Tags: