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FIRST RITZ CARLTON TO BE OPEN ON A PROPERTY IN EGYPT

Thursday, 04 Dec 2008

After undergoing a $63 million refurbishment, the Nile Hilton, formerly a landmark Egypt property in Cairo that has played host to world leaders and superstars, will be re-launched as the first Ritz Carlton in the capital. The proclamation, which was made at the Cairo Marriott Hotel on the other side of the Nile River on Wednesday, is somewhat surprising considering its timing, when travellers are cutting down on their expenses due to the current global financial turmoil, which is seriously affecting the worldwide tourism industry.

The refurbishment will start on 1 January and resurrect the many-storied Egypt property, which boasts panoramic vistas of the Nile, and whose situation close to the Egyptian Museum makes it one of the favourite venues in the city. Unfortunately, more modern, 5-star hotels swiftly outshined the stately hotel, which Hilton Hotels has managed for half a century, ever since its inauguration in 1958. At the end of 2008, Hilton’s contract will expire, and the Egypt accommodation will become a Ritz.

The Nile Hilton’s holding company, which also serves a few other ageing properties in Egypt, is going to pay approximately $63.6 million of the renovation’s cost, under the twenty-year contract agreement’s terms. To repay this, Ritz Carlton will wait until a per year target of $29 million is reached before collecting its 8%, according to Misr Hotels’ managing director and chairman, Fathi Nour.

In addition, she said that the new management will not lay off any staff. It is estimated that renovating the 431-room property in Egypt will take in the region of one-and-a-half to two years, and amenities for guests will close in the middle of next year. A new underground parking and conference centre will be added, and the suites and rooms will receive comprehensive upgrades.