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Banking consortium to hire int’l firms to manage and develop 7 hotels

Thursday 08 November 2018 05:30 PM

Banque Misr.
Banque Misr.

By Ahmed Desouqy:
A banking alliance led by Banque Misr considers hiring global firms to upgrade and develop hotels acquired by the lender under defaulted debt settlements, in the quest for mechanisms to improve the exploitation of these assets and to enhance their values, pending being offered for sale in the coming period.
Sources told Al Mal newspaper that 7 hotels, owned by a banking alliance, in Sharm El Sheik and Hurghada are planned to be developed. The market value of these hotels ranges between EGP 3bn to EGP 4bn, adding that the alliance comprises Banque Misr, the National Bank of Egypt, Industrial Development and Workers Bank of Egypt and Egyptian Arab Land Bank.
The negotiations with international firms including Hilton, Sheraton and Movenpick are conducted by Banque Misr as it owns the largest proportion in indebtedness owed by these hotels, and it has a wide experience in handling distressed assets, the sources said, adding that this approach is the first of its kind in banking sector.
Adopting this approach is ascribed to the difficulty of reaching the target selling value of these hotels by banks due to deterioration of tourism sector over the past period, according to the sources.