Desperate Egypt sells off historic hotels as it dives deeper into debt
Source: The Observer
Desperate Egypt sells off historic hotels as it dives deeper into debt
Amid biting austerity and rising inflation, the al-Sisi government is off-loading assets – some to a convicted murderer with Emirati cash
Ruth Michaelson
Sat 17 Feb 2024 16.00 GMT
As dusk fell over the verdant grounds of the Marriott Mena House hotel, the reflection of the Great Pyramid of Giza grew darker in a pool built to reflect the last of the seven wonders of the world.
A band played a smooth jazz rendition of the Eagles’ Hotel California on the grassy lawns as guests assembled for dinner, while the staff attempted to project a sense of business as usual, despite the hotel’s recent acquisition by an infamous Egyptian real estate tycoon, Hisham Talaat Moustafa, and two powerful Emirati conglomerates.
The sale of Mena House and six other historic hotels – financed by the Emirates – is part of what Timothy E Kaldas, an analyst of Egypt’s struggling and often opaque economy, termed “an underwhelming fire sale” of state assets, as the government clamours for cash injections while diving deeper into debt.
Moustafa is Egypt’s largest real estate developer, whose business empire has witnessed a rebirth since his release from prison in 2017, after President Abdel Fatah al-Sisi pardoned him of a murder conviction. His portfolio includes properties across Egypt’s new capital, the crown jewel of Sisi’s megaprojects, in addition to his hospitality arm, Icon, which owns several luxury hotels in Cairo.
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Read more: https://www.theguardian.com/world/2024/feb/17/desperate-egypt-sells-off-historic-hotels-as-it-dives-deeper-into-debt
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