Sharm el-Sheikh hotels, which have reopened in recent months, have begun to abandon international hotel brands, which are offering to sign new lease and management contracts with their hotels. The reason is the fear of raider seizures by fraudsters who act under the names of these brands, claiming to be managers of branches of these foreign companies in Egypt.
According to Egyptian media, several similar cases have been reported where unknown individuals have declared their affiliation with major foreign management companies and offered hotel owners contracts to manage their hotels, after which they tried to seize the property. Yes, one of the articles mentions the famous luxury brand Hyatt.
The fraudsters are in a good position, as most international hotel and resort management companies are now actively working to resume operations in Egypt after a period of business freezes for almost two years due to the pandemic and accumulated losses. Branches of international “Arab and foreign” restaurant companies representing international brands such as Al Shaya, Starbucks, and Fry Days, which operate in the field of cafes and international tourist restaurants, are also returning. They decided to return to work in Egyptian resorts, including hotels in Sharm el-Sheikh, Hurghada and Marsa Alam.
Foreign hotel brands are now rushing to sign new contracts with Egyptian hotels after the influx of tourists to Egypt began to grow rapidly. And during this period, according to Egyptian media, fraudsters just became more active.