Talaat Moustafa Group (TMG) is handing over the operations of two of its landmark heritage hotels to Mandarin Oriental, the real estate and hospitality giant said in a statement (pdf). Under the agreement, the Hong Kong–based global luxury hotel operator will take over the operations of the Old Cataract Aswan and the Winter Palace Luxor and relaunch them under the Mandarin banner in July 2027.

Wasting no time: The hotel operator will assume management of Old Cataract in May, before beginning its extensive renovation of the property. Meanwhile, Winter Palace will undergo complete restoration before its relaunch.

The move follows TMG’s 2024 acquisition, through its hospitality arm Icon, of a 51% stake in the seven-hotel Legacy portfolio in a USD 800 mn transaction. The transaction expanded TMG’s footprint across Cairo, Giza, Alexandria, Luxor, and Aswan. “By combining Mandarin Oriental’s legendary service standards with TMG’s long-term investment vision and local expertise, we are elevating these historic assets into world-class luxury destinations and reinforcing our position as a leading hospitality platform in Egypt,” TMG CEO Hisham Talaat Moustafa said in the statement.

TMG is doubling down on tourism: Hospitality and recurring income streams now account for more than half of the consolidated EBITDA of the country’s largest real estate developer, according to the statement. Its hotel room capacity is projected to reach roughly 5k rooms, up from about 3.5k today. The group owns several Four Seasons properties in Cairo, Alexandria, and Sharm El Sheikh. It is also developing Four Seasons Luxor, Four Seasons Madinaty, a resort in Marsa Alam, and a Four Seasons hotel adjacent to the Grand Egyptian Museum.

IN CONTEXT- Egypt welcomed around 19 mn tourists in 2025, marking a 21% y-o-y increase, and is targeting 21 mn visitors in 2026, then 30 mn visitors in 2030, as air connectivity improves and new hotel capacity comes online.

Going big on Egypt: “Egypt is one of the fastest growing global destinations and presents a rare [window] to create a journey that is both culturally rich and uniquely Mandarin Oriental,” Mandarin’s CEO Laurent Klietman said in a separate statement. In addition to its partnership with TMG, Mandarin is preparing to reopen Shepheard Hotel in Cairo in 2027 under the agreement it signed with Saudi Arabia’s Al Sharif Group in 2022. It is also set to operate its first river luxury cruise between Luxor and Aswan following its recent agreement with Garranah Group. Mandarin currently operates a luxury portfolio of 45 hotels, 15 residences, and 36 exceptional homes in 28 countries and territories.

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