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Press Releases |
Orascom, SHUAA and Rotana announce a Joint Venture to develop hotels in Egypt Dubai, 5 May 2008 – At a press conference held at Murooj Rotana in Dubai, Orascom Hotels Holding, the single largest hotel owner in Egypt, SHUAA Hospitality Fund I, a new fund managed by SHUAA Partners, the private equity arm of SHUAA Capital and Rotana Hotel Management Corporation, the leading hotel chain in the MENA region announced a Joint Venture, which will invest in developing and operating budget business hotels in Egypt to be exclusively managed by Rotana. The Joint Venture will see the initial development of five hotels under the brand Centro by Rotana and will capitalize on the growing need for affordable, trendy budget business hotels in Cairo and other strategic locations in Egypt. “We are excited about this Joint Venture, which falls directly in line with Orascom’s strategic plan to grow its extensive presence in Egypt. Reducing the shortage of branded budget hotels such as Centro by Rotana is a major opportunity and a top priority for us. OHH is the largest owner of hotel rooms in Egypt and currently has 5,800 rooms in operation with a target to reach 10,000 by 2010. These new developments will increase the diversity of our hotel portfolio enabling us to cater different travelers’ profiles”, explained Raymond Khalife, Chairman of Orascom Hotels Holding. Mr. Iyad Duwaji, Chairman of SHUAA Partners commented: “Three strong industry leaders who are committed to the region partnered today, complementing each other in many ways. We will provide the capital to develop the hotels through our new SHUAA Partners Hospitality Fund I which has attracted significant commitments already. The hospitality sector in the region is enjoying many positive internal and external factors that require additional investments to meet growing demand, and the budget sector is still vastly undifferentiated in our markets. Egypt is a prime example and we are proud to have partnered with Orascom and Rotana. This is the first investment of our Hospitality Fund and we are highly confident that it will generate superior investment returns for our investors.” Business travel and accommodation for the budget conscious executive is an increasingly important market in the Middle East but remains grossly under-serviced. The Centro by Rotana concept is specifically designed to cater to this rapidly expanding market. Appealing to large corporate entities, small and medium business owners, and individual travellers, Centro by Rotana is an 'Essential Service' hotel brand. “We are redefining the conventional concept of economical comfort and offering affordable superior class accommodation and hospitality” said Mr. Selim El Zyr President & CEO of Rotana. Crisp and modern interiors provide essential requisites and advanced technologies. Every element of the Centro concept has been fully and thoroughly researched - from the fundamental principles of guest service and operations, to the design of a unique property formula. This has resulted in a new, highly efficient operational model, which provides essential amenities and necessities specifically geared to the travelling executive. Centro is coming at a time that will ideally position it for continuous long-term development, strong operating performance and sustainable growth well in to the future. Concluding, El Zyr said “We are extremely privileged to have Orascom Hotels Holding, which is a subsidiary of one of the largest business conglomerates in Egypt, exclusively developing Centro by Rotana in Greater Cairo. Today’s announcement is a significant step, not only towards fulfilling our aggressive growth strategy for the region, but also for Rotana entering Cairo market”.
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