Tuesday 25/Feb/2025 – 11:36 am
Talaat Mustafa Holding Group has strengthened its position as the most prominent exporters of real estate and tourism services, after it succeeded in real estate expansion in Saudi Arabia, by establishing the “Benan” project in Riyadh, and completing the acquisition process on the Legacy Company for Hotels and Tourism Projects (Legasi), which owns 7 historic hotels during the year 2024 , This led to the increase in the group’s hotel room wallet by 2500 rooms to reach 3500 A room in the total, which provides a strong geographical diversity and a targeted market, and enhances confidence in the repeated sources of income of the group and its capabilities with a high profit margin to generate foreign currencies.
Establishing the most luxurious hotels in Egypt with revenues of 11.5 billion pounds during 2024
As a result of this achievement, the hotel sector of Talaat Mustafa Holding Group achieved total revenues of 11.5 billion pounds compared to 3.5 billion pounds for the same period in the previous year and a growth rate of 225%. Moreover, the group achieved about 719 million pounds of additional profits related Ligsey company during the year 2024, and the profit margin on hotel revenues increased in 2024 to 59%, with a significant increase compared to the 43% profit margin of profit.
Talaat Mustafa Holding Group intends to work to replace and renew the historic Legacy hotels and renovations in the coming years to increase the improvement of its profitability and make it equally with the original portfolio of the group, extract the value inherent in its unique locations and preserve its historical heritage for future generations of Egyptians. Future renovations and future improvements have already been funded, which is part of the acquisition price, and will not put any burden on the group’s future cash flows once they are implemented.
At the same time, the Talaat Mustafa Group offers 3 new hotels, Forsiezon’s Luxor, Four Seasons City, and Marsa Alam Resort, which is expected to start operating as of 2026, and with another luxurious property in the development phase in Giza, and the group intends to increase its total portfolio From rooms to about 5,000 rooms in the coming years.
Paying the total debt in foreign currency
It is worth noting that the total debt was paid in foreign currency of $ 217 million in the entire hotel sector during the year 2024 and removes, achieving protection for the group from the risks of changing the exchange rate in foreign currency, this payment is risks related to the exchange rate of foreign currency and leads to full savings in financing costs Associated with this debt, which positively affects the future profitability of the group’s hotel sector and its ability to Foreign currency generation.
The success of the Talaat Mustafa Group contributed to becoming the most prominent real estate and tourism services exports, in increasing the balance of cash and its rule of foreign currencies from the amount of $ 133 million at the end of 2023, so that the balance becomes 665 6656 million dollars at the end of 2024 and the source of this balance is in who The real estate sector with a balance of 402 478 million dollars and the tourism sector with a balance of 188 million dollar.
In a related context, the revenues of activities with periodic return and service activities for the Talaat Mustafa Group increased to 6.66 billion pounds during the year 2024 compared to 3.31 billion pounds for the same period last year, and with a growth rate of 101%, and revenue for leasing activities in all commercial centers and malls of the group reached 920 million EGP, with a strong increase of 39% on an annual basis with the implementation of rental increases Annual and starting new spaces. At the same time, the revenues of the sports clubs sector increased by 160% compared to last year to reach 1.97 billion pounds, and these results and sustainable growth of these sectors show the group’s commitment to strengthening their repeated sources of income, in line with its strategic strategic goals.
It is worth noting that the great diversification of the group’s revenues is driven by expansion of projects outside Egypt, such as the Benan project in the Kingdom of Saudi Arabia, and the growth of its hotel portfolio, will double the group’s revenues in foreign currency. The revenues denoted in foreign currency formed about a third of the total group revenues in 2024, This reflects the great contribution of the hotel sector to the total achieved revenue, and is in line with This is with the group’s strategy that approximately 60% of its total revenue is based in foreign currencies, which positively affects the company’s financial financial position and is that its returns against the company’s local currency fluctuations and achieve protection and hedging against the risk of exchange rate fluctuations.
