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TMG Holding, led by Egyptian tycoon Hisham Talaat Moustafa, acquired a 51% equity stake and full management rights in Legacy Hospitality Company (Legacy), a newly established firm with a portfolio of seven hotels in Egypt.
TMG Holding said today that the final acquisition contract had been completed, thereby confirming its control over Legacy Hospitality. In December, TMG’s hospitality arm, ICON, acquired 39% of Legacy. The deal was closed with refund of the remaining amount. This strategic move is part of an agreement between the Egyptian government and TMG aimed at increasing Egypt’s foreign currency reserves.
TMG Holding, which has had a strong presence in Egypt’s real estate business since its foundation in 1974, has strengthened its position even further with this acquisition. The company, backed by billionaire investor Hisham Talaat Moustafa, has taken steps to alleviate Egypt’s foreign currency shortfall by producing revenue in dollars from its hotel ventures.
By completing this transaction, TMG transferred the agreed-upon deposit to an escrow account in the Egyptian banking system. This move essentially adds 2,500 keys to the group’s operating hotel room base, bringing the total to a whopping 5,000. TMG Holding is presently Egypt’s largest premium hospitality platform, with a substantial impact on tourism and economic growth.
Hisham Talaat Moustafa, one of the wealthiest investors on the Egyptian Exchange and in North Africa, owns 43.16 percent of TMG, which translates to 890,633,483 ordinary shares.
The new acquisition is consistent with TMG’s objective of maximizing recurring income operations, increasing foreign currency resources, and generating spare liquidity for future dividends or reinvestment in quality recurring income assets.
The addition of Legacy Hospitality to TMG’s portfolio intends to harness the group’s significant experience managing large-scale hospitality businesses. This step is expected to boost operational efficiency in Legacy’s heritage sites, drawing higher-quality tourists to Egypt and contributing to the country’s broader tourism industry.
TMG Holding’s recent acquisition not only strengthens its position as a prominent participant in Egypt’s real estate and hospitality industries, but it also demonstrates the company’s dedication to long-term growth and economic prosperity for the country.
