Talaat Moustafa Group (TMG), Egypt’s largest property developer, announced plans to nearly double its hotel portfolio over the next ten years. CEO Hisham Talaat Moustafa revealed the group aims to increase from about 20 hotels currently to between 35 and 40 properties, establishing hospitality as a core business segment alongside real estate development.
Legacy Hospitality Stake Acquisition and Iconic Properties
TMG’s hospitality branch ICON recently acquired a 39% stake, with management control, in Legacy Hospitality, which owns seven of Egypt’s most recognized historic hotels. The stake is expected to rise to 51%. Saudi investors affiliated with the Public Investment Fund have joined the consortium acquiring Legacy Hospitality.
This acquisition includes landmark hotels such as the Winter Palace in Luxor and the Old Cataract in Aswan.
Luxury Hotel Partnerships and New Developments
Talaat Moustafa Group has partnered with top hotel operators to manage its hospitality assets. Mandarin Oriental will oversee the Winter Palace and Old Cataract hotels after their restoration. Additionally, Four Seasons and Steigenberger will manage other flagship properties. TMG is constructing new Four Seasons hotels in Luxor and Madinaty, with a luxury resort under development in Marsa Alam. The group is also planning a mixed-use project adjacent to the Grand Egyptian Museum.
Strong Financial Results and Revenue Growth
TMG’s hotel sector revenue increased 21% in the first quarter
of the year to around $90 million (4.3 billion Egyptian pounds). Hotel occupancy rates rose to 63%, up from 60%, while average daily room rates climbed 15% to about $285 (13,677 Egyptian pounds). Recurring income now constitutes 53% of TMG’s consolidated revenue. First-quarter net profit grew 24% to roughly $115 million (5.5 billion Egyptian pounds), and total revenue increased 39% to approximately $273 million (13.1 billion Egyptian pounds). Contracted sales during this period reached $1 billion (49.1 billion Egyptian pounds).
Regional Expansion and Land Bank Size
Beyond Egypt, TMG’s Riyadh-based Banan City project generated sales of about $69 million (3.3 billion Egyptian pounds) in the first
quarter. Two developments in Oman contributed 900 million Egyptian pounds in sales. The company’s land holdings exceed 125 million square meters across Egypt, Saudi Arabia, Iraq, and Oman. Key flagship projects include Al Rehab, Madinaty, Celia, Noor City, and the $21 billion SouthMED coastal tourism development on Egypt’s Mediterranean shore.
Strategic Shift Toward Hospitality and Tourism
TMG’s expansion aligns with regional trends emphasizing tourism, luxury hospitality, and mixed-use developments as stable income sources beyond cyclical real estate sales. Egypt’s government has invested heavily in airports, museums, coastal resorts, and hospitality infrastructure to boost international tourism. CEO Hisham Talaat Moustafa outlined that the hotel portfolio growth will
strengthen connections between residential areas, hotels, and entertainment assets, fostering integrated live-work-spend environments. TMG is also preparing a major entertainment project with Gulf investors to capitalize on the region’s fast-growing leisure industry.
