A new state-owned company that will own a portfolio of seven five-star properties nationwide could offer as much as 20-30% of its shares to private investors as part of the Madbouly government’s privatization program, Hapi Journal reports. The seven hotels are now owned by the state’s Holding Company for Tourism and Hotels (HOTAC) and are being transferred to a newly established holding company, HOTAC chief Adel Wali told the newspaper. The Sovereign Fund of Egypt is managing the transaction.

Two names confirmed: The seven hotels on offer include the Cairo Marriott Hotel in Zamalek and Marriott Mena House next to the pyramids complex, Wali is quoted as saying.

Other potential candidates: The other five names haven’t yet been confirmed, but former public enterprises minister Hisham Tawfik last year reportedly said Aswan’s Sofitel Legend Old Cataract and the Steigenberger Cecil Hotel in Alexandria would be included alongside the two Marriott hotels. All four locations are owned by HOTAC.

Who’s buying? A government source told Enterprise in January that most of the interest was coming from Gulf funds, adding that the government was reevaluating which hotels to include in the sale following the latest devaluation of the EGP. Saudi Arabia’s Public Investment Fund (PIF) has been named as one of the most eager potential investors.

WATCH THIS SPACE- Will strategic investors (foreign or domestic) have appetite for minority stakes? Most strategic investors have strong preferences for majority stakes (to ensure they can full consolidate the results of their new investment) with clear management control (to make sure they can drive performance improvements). This theme will run throughout the privatization program — doubly so when we’re talking about well-managed, well-governed companies that aren’t already listed on the EGX.

REFRESHER- PM Moustafa Madbouly last week unveiled the government’s plan to sell stakes in 32 state-owned companies — including unnamed hotels — through sales to strategic investors and offerings on the EGX. The plan runs from the current quarter through to the end of 1Q 2024, with at least 25% of the share sales — or eight transactions, for those of you keeping track at home — set to come within the first six months. The government first announced last year that it would merge seven or eight state-owned hotels into a single entity to be offered up as part of the privatization plans.