Egypt signs 20-year deal to redevelop state-owned Jet Beach Hotel in Ain Sokhna

Egypt’s public business sector and petroleum ministries signed a 20-year usufruct agreement on Tuesday to redevelop and operate the Jet Beach Hotel in Ain Sokhna, part of government efforts to maximise returns from idle state assets and boost the country’s tourism capacity.

Under the deal, the Egyptian General Company for Tourism and Hotels (EGOTH), a subsidiary of the Holding Company for Tourism and Hotels that reports to the Ministry of Public Business Sector, will invest around 120 million Egyptian pounds ($2.5 million) to upgrade, manage and operate the hotel, which is owned by the state petroleum company Petrojet.

The redevelopment, covering a total area of 15,345 square metres, is expected to take 18 months and will include technical and operational upgrades as well as new recreational and service facilities to align with international hospitality standards, the ministries said in a joint statement.

Public Business Sector Minister Mohammed Sheemy said the project represented “a model of institutional integration between state companies” and would help expand tourist facilities in Ain Sokhna, one of Egypt’s most promising Red Sea destinations. He added that re-operating the hotel would contribute to tourism development, create new jobs and generate sustainable returns from public assets.

Petroleum Minister Karim Badawy said the agreement illustrated the petroleum sector’s push to repurpose service assets into profitable ventures, turning them into “real investment opportunities that boost tourism and economic diversification.”

EGOTH will manage and operate the hotel under the usufruct system for 20 years, ensuring growing and sustainable returns over the contract period, according to the agreement.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser