Press Release

Minimal impact from Thomas Cook on Orascom Development's Group operations.

Current effect on operational business is immaterial

Altdorf, September 23, 2019 - The British tour operator Thomas Cook, who filed for bankruptcy today, was one of the leading tour operators on a global level. Orascom Development Holding (ODH) and Orascom Development Egypt (ODE) were collaborating with Thomas Cook for many years on a very successful level. Thomas Cook current effect on ODH operations however is immaterial and its short-term impact is minimal. Earlier in December 2018, Orascom Development Egypt (ODE) through its hotel subsidiary Orascom Hotels Management (OHM) signed an agreement with Thomas Cook to rebrand Arena Inn, El Gouna's 144-room hotel to become a Cook's Club Hotel and develop a new 100-room hotel under the name of Casa Cook. Cook's Club was opened in mid-August 2019, while Casa Cook Hotel has been planned to open in end of October 2019.

Fortunately, we are in the situation to confirm that we already collected the upfront payments from the company for these hotels and that we are finalizing the construction of the new 100 room hotel planned to be operational in October. Regarding the impact of Thomas Cook's bankruptcy, we do not foresee a big impact as our operations will fill the hotels' rooms up with other tour operators. It is important to mention that the agreement with Thomas Cook constitute only 244 rooms out of Orascom Development portfolio of 7,082 rooms so the short term impact is excepted to be minimal. They represent only 1.4% of El Gouna hotels' revenues business, which is 1.2% of ODE hotels' revenue business and 0.8% of ODH hotels' revenue business. As for the concerned hotels, there is no shareholding interest or ownership in the hotels. The two hotels are under Orascom Development operations and they are franchised under a franchise agreement. In the mean course, ODH will ensure that the hotels are well commercialized and the Company's return on investment is inline with the company's projections and budget.

About Orascom Development Holding (ODH):

Orascom Development Holding (ODH) is a leading developer of fully integrated destinations that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. Orascom Development's diversified portfolio of destinations is spread over seven jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with primary focus on touristic destinations. The Group currently operates nine destinations; four in Egypt (El Gouna, Taba Heights, Fayoum and Makadi Heights), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro and Andermatt in Switzerland. The shares of Orascom Development Holding (ODH) are listed on the SIX Swiss Exchange.

Contact for Investors:
Sara El Gawahergy
Head of Investor Relations & Strategic Projects Management
Tel: +202 246 18961
Tel: +41 418 74 17 11
Mob: +41 79 156 78 49
Email:ir@orascomdh.com

Contact for Media Relations:
Philippe Blangey
Partner
Dynamics Group AG
Tel: +41 432 68 32 35
Email: prb@dynamicsgroup.ch
 

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