Hisham Talaat Moustafa (L) and Humaid Matar Al Dhaheri (R) sign agreement in the presence of H.E. Mohamed Hassan Alsuwaidi
Hisham Talaat Moustafa and Humaid Matar Al Dhaheri sign agreement in the presence of Mohamed Hassan Alsuwaidi. Image Credit: Supplied

Abu Dhabi: Abu Dhabi-based investment and holding company ADQ and Adnec Group signed an agreement to acquire 40.5 per cent stake in Egypt-based Talaat Moustafa Group Holding’s (TMG Holding) hospitality arm – Icon Group.

The UAE companies have said they would invest in Icon Group invest through a special purpose vehicle, with 49 percent equity ownership by ADQ and 51 percent equity ownership by Adnec.

Icon has a track record of building and owning luxury hotels in Egypt, including - Four Seasons Cairo at Nile Plaza, Kempinski Nile Hotel Cairo, Four Seasons Sharm El Sheikh and Four Seasons Alexandria at San Stefano.

The company also has three hotels and luxury residential real estate assets currently under development, such as the Four Seasons in Madinaty and Luxor and Radisson Collection in Marsa Alam, and one hotel under design, the Four Seasons at The Pyramids.

This transaction represents a major foreign direct investment in Egypt and marks a strong vote of investor confidence in the Egyptian tourism and hospitality sector, said ADQ.

The investment by ADQ and ADNEC in TMG’s Hospitality arm will be used partially to deleverage Icon’s existing debt, with the remaining would be used for the acquisition of a stake through Icon in the portfolio of seven luxury heritage hotels owned by the Egyptian Government.


These assets include Marriott Cairo Omar Khayyam Zamalek, Marriott MENA House Cairo, Sofitel Winter Palace Luxor, Sofitel Legend Old Cataract Aswan, Steigenberger Cecil Hotel Alexandria, Steigenberger Hotel El Tahrir Cairo and Mövenpick Resort Aswan.

Post-transaction, Icon will have a combined portfolio of 15 luxury and upscale hospitality assets with a total of around 5,000 keys in prime locations including Cairo, Luxor, Aswan, Sharm El Sheikh and Alexandria.

Humaid Matar Al Dhaheri, Managing Director and Group CEO of Adnec Group, said: “The investment in Icon is an important strategic step for Adnec Group, as we deliver on our global expansion strategy and will provide Adnec Group and its portfolio companies with access to Egypt’s rapidly growing tourism market and reaffirms our commitment to enhance our hospitality and tourism platform.”

Egypt’s tourism sector is anticipated to grow to more than 30 million tourists annually by 2028 and currently has a limited supply of heritage hotels across the luxury and upscale segments of travellers.

In the past years, ADQ has made investments in market leaders across different sectors, including the acquisition of Amoun Pharmaceutical Company S.A.E., one of Egypt’s leading pharmaceutical manufacturers, distributors, and exporters.

Meanwhile, Hisham Talaat Moustafa, CEO and Managing Director of TMG Holding, said: “Through this partnership we will pursue substantial growth opportunities in Egypt’s tourism sector and beyond and will unlock further value for our shareholders.”