The general assembly of the Holding Company for Tourism and Hotels (HOTAC) approved the consolidated balance sheet of the holding company and its subsidiaries for 2019/20 with EGP 4.2bn in total revenues, a growth rate of 32.6% compared to 2017/18, and EGP 1.2bn in net profits with a growth rate of 45.5% in 2017/18.
The ordinary assembly’s work was led by Minister of Public Enterprise Sector, Hesham Tawfik.
The holding company, as an independent financial unit, aims to achieve EGP 533.2bn in total revenues with an increase of 128.5% year-over-year (y-o-y). The target net profit is EGP 288.6m with an increase of 85.2% y-o-y.
Results of the targeted operations of the subsidiaries during 2019/20 are expected to achieve EGP 3.3bn revenues with a growth rate of 27.8% compared to the achieved amount in 2017/18. They are also expecting a net profit of EGP 943.3m, an increase of 36.6% compared to 2017/18.
Investments implemented were worth EGP 783.6m with a growth rate of 257% compared to the achieved amount in 2017/18.
HOTAC’s Chairperson, Mervat Hataba, highlighted the vision and strategy of the company and its subsidiaries to maximise the role of tourism, increase competitiveness, utilise good investment opportunities through partnerships with the private sector, develop assets, increase economic returns, and diversify revenues, as well as be present in tourist markets, like Marsa Alam.
She pointed to a number of partnership models with the private sector, including developing the Shahrazad Hotel with EGP 100m investments, signing a contract for the management and development of the Cosmopolitan Hotel at an investment cost of EGP 85m, and signing contracts for the establishment and management of the Grand Egyptian Museum garage at an estimated cost of EGP 60m.
A partnership agreement is signed to establish a five-star international hotel on the Sultan land of in Luxor, as well as partnership contracts for the development and modernisation of the branches of internal trade companies, as 201 branches so far achieved revenues of EGP 175.8m.
El-Lisan hotel is scheduled to open in the city of Ras El-Bar this month after the completion of the developments. Its management was assigned to the Steinberger Hotels and Resorts company.