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Egypt comes up with a new plan for propping up struggling hotels

Tuesday 25 September 2018 06:30 PM

Rania El-Mashaat
Rania El-Mashaat

By Ahmed Ashour
The Egyptian government is mulling a number of options for propping up and revamping struggling hotels that were badly hit by declining tourism.
 The plan set out for rescuing the struggling hotels involve proposals that will be carried out through Hotels Revamping Fund whose capital base is about to be created in collaboration with lenders and investors, according to informed sources.
" The first proposal includes taking over  the struggling hotels as well as putting in place a scheme for revamping and raising their revenues. The second proposal includes assigning management of the defaulting hotels to HRF which will hire, in return, a world-class management company for a limited period of time until the hotels turn around,"  the sources told Al-Mal newspaper, adding that the third proposal involves the partial acquisition of assets of the struggling hotels and to use the returns in upgrading and paying back their heaping debts.
Ministry of Tourism urged a group of investors, the National Bank of Egypt and Misr Banque to take part in founding HRF which will be charged with rescuing the hotels in view of the above-mentioned proposals.
With EGP50mln capital already  injected by Ayadi-Egy in 2015 and USD1bn targeted capital, HRF was established back in 2014 in order to support and shore up the struggling enterprises that were badly impacted by January 11th Revolution.