Yasseen Mansour’s Palm Hills backs $25.2 million loan for 200 hotel rooms

Key Points

• Palm Hills approved a $25.2 million syndicated loan guarantee to support hotel development at Hacienda White, signaling expansion in Egypt’s hospitality sector.
• The loan, arranged by Banque Misr, will fund 200 hotel rooms, reflecting confidence in North Coast tourism as demand for premium coastal resorts continues to rise.
• Governance amendments and strategic financing underscore Palm Hills’ shift toward its subsidiaries, expanding beyond its core residential.

Palm Hills Developments, a Cairo-based real estate firm chaired by billionaire Yasseen Mansour, has moved to guarantee a major syndicated loan worth $25.2 million for one of its subsidiaries, marking a further expansion in Egypt’s luxury hospitality sector.

The EGP1.3 billion ($25.2 million) loan, arranged by Banque Misr, will finance the construction of 200 hotel rooms within the high-end Hacienda White development on Egypt’s North Coast, a booming destination for affluent domestic and regional tourists.

The project is being handled by the Middle East for Real Estate and Tourism Investment LLC, a subsidiary of Palm Hills, and reflects the group’s growing interest in tapping Egypt’s tourism resurgence through premium resort offerings.

Strategic financing for growth and exposure to hospitality market

In a board meeting held on April 8, Palm Hills’ directors formally approved a resolution to back the loan. By guaranteeing the debt, the parent company is effectively offering to repay the bank if the subsidiary fails to meet its obligations, increasing its financial exposure while providing the lender with added security.

The board also approved amendments to Article 21 of the company’s articles of association, paving the way for an extraordinary general assembly meeting. This suggests broader governance changes may be in the pipeline, likely tied to Palm Hills’ capital strategy and expansion plans.

Hacienda White, already a symbol of North Coast luxury, is set to further elevate its standing with the addition of the 200 hotel rooms. The development is part of a wave of high-end coastal projects aiming to capitalize on both local demand and international visitor interest as Egypt’s tourism industry recovers from recent global disruptions.

Palm Hills bets on coastal tourism resurgence

Palm Hills, Egypt’s second-largest listed real estate firm and a subsidiary of Mansour Group, has experienced impressive growth in recent years. The company, where Yasseen Mansour holds a 10.17-percent stake, specializes in creating integrated residential and commercial communities across Egypt.

The recent approval of a hotel development loan—one of the largest hospitality financing deals in Egypt—underscores Palm Hills’ commitment to taking on considerable risk to secure long-term growth. This shift marks a strategic move into the hospitality sector, complementing the company’s core focus on residential developments.