Egyptian Hotel Takeover Bucks Trend

FRANKFURT-The investment by Egyptian tourism company Travco in the Frankfurt-based hotel chain Steigenberger came as a surprise to the German investment community, with the sector still quiet amid the financial crisis, and mainly domestic investors currently active.

The family-held 81-unit hotel chain Steigenberger announced in early August that it has been acquired almost in its entirety by Egyptian tourism company Travco Group International, owned by Hamed El Chiaty and his family. The two parties agreed not to disclose the price, but Travco said its aim is to expand the brand internationally.

The transaction includes the brands Steigenberger Hotels and Resorts and InterCityHotel, but does not encompass its flagship hotel in Frankfurt, which remains in Steigenberger family ownership. A statement said Travco, which also operates hotels and Nile cruise ships, will continue to pursue and further develop the long-term targets of the company.