ICON, the hospitality arm for Talaat Mustafa Group Holding has signed the final acquisition contract of 51% stake with the full management rights for Legacy Hospitality company.
The company has stated that ICON has transferred the agreed upon amount to a separate account within the Egyptian banking sector in order to be transferred to Legacy Hospitality company after completing the procedures for increasing the company’s capital. It was also mentioned that this deal will result in increasing the group’s operational hotel room base by 2,500 hotel rooms in Egypt, bringing the total number of rooms that ICON owns and is developing to 5,000 rooms.
The acquisition is expected to double the combined revenues of the hotels owned by the ICON Group to more than $250 million during the current year.
On December 20, 2023, Talaat Moustafa Holding Group announced that its hotel arm, ICON, had signed the final agreements for the acquisition of a 39% stake with full management rights in the stake reaching 51% within a specific period of time in Legacy Hotels Company, according to the timetable of the concluded contract.
The value of the deal will reach $800 million when the ownership percentage in Legacy Hotels Company reaches 51%. The deal will also be financed through the internal resources of ICON, in addition to a capital increase of $882.5 million by a well-known international strategic investor to acquire. A minority stake in ICON following the restructuring, with the group retaining a majority stake.
It is noteworthy that Legacy Hotels owns 7 hotels in Egypt, which are “Sofitel Legend Old Cataract Aswan, Mövenpick Resort Aswan, Sofitel Winter Palace Luxor, Steigenberger Tahrir Hotel, Steigenberger Cecil Hotel Alexandria, Marriott Mena House Cairo, Marriott Omar Khayyam Zamalek, which were previously owned by For the Egyptian General Company for Tourism and Hotels EGOTH. Legacy is a joint company between the Egypt Sub-Fund for Tourism, Real Estate Investment, and Antiquities Development and EGOTH.
