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Thursday, November 9, 2023

ADTIC develops a hotel overlooking the Pyramids with investments exceeding $80m

Abu Dhabi Tourism Investment Company (ADTIC) was established in Egypt in 1988 and specializes primarily in hotels in Sharm El-Sheikh, Hurghada, and the Pyramids area. ADTIC is the result of investment cooperation between the Arab Republic of Egypt and the United Arab Emirates.

Currently, ADTIC is renovating two hotels in Sharm El-Sheikh and Hurghada with investments totaling approximately $81m, according to Yahya Kotb, the CEO of the company.

Kotb also mentioned that the company is developing a large hotel directly overlooking the Pyramids and the Grand Egyptian Museum, with investments exceeding $80m. This brings the total current investments in the three hotels to around $161m.

Regarding the Sharm El Sheikh Hotel, Kotb stated that the cost of renovation is approximately $41m. The first phase of renovation is set to be completed in December of this year, with the second and final phase finishing in May of next year. The Movenpick Sharm El-Sheikh hotel has a total of 298 rooms.

Kotb further explained that the renovation of the Hurghada Hotel will cost approximately $40m. The hotel will be rebranded, possibly bearing the name Movenpick (formerly Mercure). Renovation work is scheduled to begin in April 2024, and the hotel, operated by Accor, will have a total of 469 rooms. Additionally, there are plans to develop a large hospitality project on adjacent land, with details to be determined by the end of the third quarter of next year.

The company is also preparing for an expansion phase of the Movenpick Sharm El-Sheikh hotel within the next three years, which will begin once the hotel is fully renovated. This expansion phase will include adding 120 rooms.

Furthermore, ADTIC intends to establish a large hotel project on the land adjacent to the Mövenpick Hotel Sharm El Sheikh, offering a variety of hotel services to meet the needs of tourists in the future.

The Pyramids hotel is currently being redesigned by an international English company and will be rebuilt as a five-star brand. Licenses are currently being obtained, and construction is planned to begin in April 2023. The hotel will be operated by Accor and is likely to be named “Sofitel Legend,” similar to the “Old Cataract” hotel in Aswan. It is expected to have around 302 rooms, all overlooking the Pyramids and the Grand Egyptian Museum. ADTIC plans to open the hotel in August 2026.

The company is in the process of appointing a consulting office to develop its strategic investment plan for the next five years. This includes expanding into new tourist areas such as Aswan, Marsa Allam, the North Coast, the New Administrative Capital, New Cairo, and downtown Cairo. The consulting office will also study areas with great tourist attraction based on the company’s priorities, as well as opportunities for acquisitions in the hospitality sector, including restaurant chains and other hospitality companies. Additionally, the consultant will explore investment opportunities in other sectors such as health, education, and clean energy to support Egypt’s development.

Kotb believes that the tourism sector will revive and experience significant growth in the current and next year, especially after the impact of the COVID-19 pandemic. He emphasized that Egypt has become a prominent tourism destination globally, particularly with the opening of the Grand Egyptian Museum. The devaluation of the local currency has also played a major role in boosting the tourism market in Egypt.

Despite tensions in the Middle East region, Egypt remains stable, secure, and safe, distinguishing it from other countries. Its pristine seawater, natural resources, and cultural tourism have contributed to its position as a leading tourism destination.

Kotb projects a 30% growth in the tourism sector and notes that the current year has already seen a 40% increase compared to 2022.

He strongly believes in the tourism sector’s pivotal role in adapting to climate change and is dedicated to implementing eco-friendly practices and supporting initiatives that minimize the impact of tourism on the environment. ADTIC aims to set industry standards and contribute significantly to a more sustainable future.

Furthermore, Kotb announced that ADTIC is committed to fostering innovation, establishing strong partnerships, and delivering exceptional customer experiences. By leveraging cutting-edge technologies and staying ahead of market trends, the company strives for continuous improvement and excellence in its offerings. With a clear vision, a sustainable mindset, and a dedicated team, Kotb is confident that ADTIC will thrive and make a profound impact in the tourism industry.

ADTIC is owned by the Abu Dhabi Fund for Development (84%), while Abu Dhabi National Hotels company owns 10% of the company. The remaining percentage is shared by Egyptian business sector companies operating in the tourism and hotel industry.

BFIA Admin
BFIA Admin
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