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Investors to own a controlling stake in a venture for revamping Shepherd Hotel

Thursday 27 September 2018 06:40 PM

Mervat Hataba
Mervat Hataba

By Ahmed Ashour
The Egyptian General Co. For Tourism & Hotels ( EGOTH) is inviting investors to contribute to a majority stake in a USD100mln new company that will own Cairo's Shepherd Hotel.
In invitation letter directed to investors, EGOTH said that it will have  in-kind stake in the new venture whose investment costs will amount to USD130mln alongside an allowance that will be specified upon signing the partnership deal.
" Feasibility studies revealed that investments  into Shepherd Hotel  will yield up to 27 percent returns, as the winning investor shall bear up to USD66mln costs that may be paid on installments," said chairperson of EGOTH Mervit Hataba.
Investors were granted a grace period terminating in 16 October to submit documents certifying their previous experiences as well as financial statements.   
While eying a direct award contract, EGOTH had held intensive negotiations with  investors from the United Arab Emirates and other Arab countries over the incorporation of a new entity with the aim of revamping Shepherd Hotel, but Minister of Public Business Sector Hisham Tawfiq decided to open the door for all investors to take part in the competition leading to awarding the contract.
Being one of the most celebrated hotels in the world from the middle of the 19th century until it was burned down in 1952 in the Cairo Fire. A new hotel was built nearby five years after the original hotel was destroyed.