ERC and Nikki Beach Hotels and Resorts Sign MOU for Management and Operation of a Boutique Hotel in Sahl Hasheesh’s SAWARI Marina
Cairo, October 18, 2011 13:00 hrs Cairo time (11:00 hrs GMT)
Nikki Beach will provide assistance and advice on the construction, opening, and international marketing of a boutique hotel in Sawari; the leading global hotel and resort operator/manager will also manage the property going forward
Egyptian Resorts Company (EGX: EGTS.CA), Egypt’s leading master developer of mega-communities, announced today that it has signed a memorandum of understanding (MOU) with Nikki Beach Hotels and Resorts for the operation and management of a 100-room boutique hotel to be built at Sahl Hasheesh, ERC’s unique, purpose-built Red Sea destination.
The boutique hotel will be located on a key beachfront property in Sahl Hasheesh’s Sawari marina development. Nikki Beach Hotels and Resorts is a collection of upscale lifestyle properties at desirable beachfront and urban locations worldwide. The project will accommodate, on top of the 100-room hotel, the world renowned Nikki Beach club, meeting space, food and beverage facilities, a night club and a luxurious Spa.
“We are very excited to be partnering with Nikki Beach to develop this key property in the Sawari marina, which sits at the heart of Sahl Hasheesh’s coastline,” said Carlos Arenas, Director of Strategy and Business Development at ERC. “It is very rewarding to have a top global brand seeking out Sahl Hasheesh, and we look forward to jointly raising local and international consumer awareness of both Sahl Hasheesh and Sawari marina.”
Nikki Beach Hotels and Resorts has broad experience operating and managing boutique hotels and beach clubs at key tourist destinations including, among others, Miami, Saint-Tropez, Marbella, Croatia, Cyprus, Greece, Cape Verde and Qatar. In addition to operating and managing the new luxury property, Nikki Beach will consider branding some of the more distinguished Sawari residences.
As the crown jewel of Sahl Hasheesh, Sawari will become the Red Sea Coast’s premier marina, enhancing Sahl Hasheesh’s appeal as a top destination in the area for second-home owners and property investors from across Europe and the Gulf. The Sawari marina is being developed in partnership with Orascom Development and Management, a subsidiary of Orascom Development Holding. First units are set for delivery in 2014.
“Convincing Nikki Beach to invest time and energy in Egypt is not just a win for Sahl Hasheesh and ERC, but for the Egyptian economy at large. This comes at a key post-Revolution time as analysts wonder what is next for our industry. We believe the Nikki Beach MOU suggests a clear answer: Top international players see outstanding profit potential in Egypt, particularly on the Red Sea Coast.”, said Mohamed Kamel, CEO at ERC.
The MOU is valid for one year and is dependent on ERC’s ability to secure an investor/developer for the project. News of the memorandum comes in the wake of ERC’s announcement earlier this year that it will play a more hands-on role in the development of the remaining strategic assets in its Sahl Hasheesh land bank by partnering with leading national and international players rather than through bulk sales of infrastructure-installed land plots.
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About ERC
Egyptian Resorts Company S.A.E. (EGX: EGTS.CA) is a master developer of international standard resort communities on a fully-integrated management basis. The company is incorporated in Egypt and headquartered in Cairo. Egyptian Resorts Company acquires broad land holdings suitable for premium mega resort development at nominal value. The company then creates a master plan in partnership with global architectural and urban planning firms, builds state-of-the-art infrastructure, implements design guidelines and community management rules and regulations, and then on-sells individual pre-designated plots to sub-developers and investors whose primary businesses are hotel ownership, operation and management, as well as luxury resort and residential real estate development. ERC is developing multiple recurring revenue streams that include the supply of utilities (water, electricity, communications) through its project partners, as well as community management and maintenance fees and revenues generated by Sahl Hasheesh Company.
About Nikki Beach Hotels and Resorts
Nikki Beach Hotels and Resorts is a worldwide premier luxury brand synonymous with jet set travel, leisure and entertainment. Founded in 1996 by Jack Penrod, Nikki Beach established a new standard for unique and exciting Beach Club experience.
Nikki Beach has expanded over the years with venues in St Tropez, St Barths, Cabo San Lucas, New York City, Marbella, Koh Samui, the Dominican Republic and many other high profile destinations.
In 2007 Nikki Beach developed the Hotels & Resort concept to offer a unique hospitality experience for our worldwide customers.
Nikki Beach Hotel and Resorts operates five star luxury boutique hotels and resorts with Ultra VIP Service for all guests. Its hotels and resorts offer the theatrical entertainment Nikki Beach Style, interactive events that are heavily influenced by Art, Music, Fashion & Film that has been the hallmark of the brand since the 90s.
About Sahl Hasheesh Resort
Sahl Hasheesh Resort is ERC’s flagship master planned development, located just south of Hurghada on the Egyptian Red Sea coast. Built according to the highest international design standards, the year-round resort features world-class accommodation and amenities, including over 1,500 currently operational hotel rooms and several residential communities, targeting both tourists and first and second-home owners. Sahl Hasheesh boasts commanding sea views throughout its 4,100 hectares (two-thirds the size of Manhattan), the longest beach on the Red Sea and several renowned dive sites, including Hasheesh Island.
ERC Capital Structure
Authorized Capital EGP 2,000,000,000
Issued and Paid-In Capital EGP 1,050,000,000 (1,050,000,000 shares @ EGP 1.00 / share)
Shareholder Structure
KATO Investment 11.96%
Rowad Tourism Company 10.00%
First Arabian Company 10.00%
Al Ahly Capital Holding 8.99%
Misr Insurance 8.05%
Misr for Life Insurance 6.95%
Orascom Development Holding 4.50%
Other long-term investors 7.64%
Free Float 31.91%
Investor Contact
Abu-Bakr Makhlouf |Telephone +202 2735 8427
Head of Investor Relations |Fax +202 2735 2743
Egyptian Resorts Company |email abmakhlouf@erc-egypt.com
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