Business | Tourism
Orascom plans budget hotels in Cairo
Orascom, the largest hotel owner in Egypt, yesterday announced joint venture plans to develop five budget business hotels under a central brand, in Cairo at a cost of $80 million to $100 million.
- By Suzanne Fenton, Staff Reporter
- Published: 00:12 May 6, 2008
Dubai: Orascom, the largest hotel owner in Egypt, yesterday announced joint venture plans to develop five budget business hotels under a central brand, in Cairo at a cost of $80 million to $100 million.
The venture, Centro, is in conjunction with Abu Dhabi-based hotel operator Rotana Hotels and Resorts and Shuaa Hospitality Fund 1, managed by Shuaa Partners, the private equity arm of Shuaa capital.
Centro will be managed by Rotana.
"The hospitality sector in the region is enjoying many positive factors that require additional investments to meet the growing demand. And the budget sector is still vastly undifferentiated in our markets," said Iyad Duwaji, chairman of Shuaa partners.
Salim Al Zyr, president and CEO of Rotana, which will manage Centro said there is a need in the Middle East for budget business hotels.
Raymond Khalife, chairman of Orascom Hotels Holding, said: "We will have one or two hotels in Greater Cairo where there is a lot of new development taking place and one or two in Cairo itself. And maybe one in Mohandiseen as it's an upcoming business district."
Khalife also said they were "shooting for one on the Nile".
Although the exact completion date is not yet decided, Iyad Duwaji said: "Things in Egypt move a lot slower than in Dubai but I'd say about three years maximum for completion."
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