Egyptian billionaire Hisham Talaat Moustafa’s TMG Group opens 2026 with $104 million profit

Talaat Moustafa Group (TMG) Holdings, Egypt’s largest publicly listed developer under Egyptian billionaire Hisham Talaat Moustafa, has deepened its dominance in Egypt’s real estate sector, opening 2026 with profit exceeding $100 million, reflecting sustained operating strength and the continued evolution of the Group’s diversified business model.

The Cairo-based developer posted net profit of EGP5.5 billion ($103.92 million) in the three months ended March 2026, up 24% from EGP4.4 billion ($83.11 million) a year earlier, while backlog climbed to EGP457.9 billion ($8.65 billion), reinforcing long-term revenue visibility. 

Q1 sales down 36% to $927 million amid revenue surge

The Egyptian real estate and hospitality developer reported contracted sales of EGP49.1 billion ($927.36 million) in the first quarter of 2026, down 36% from a year earlier, primarily due to a high comparison base that included a one-off EGP17 billion ($321.06 million) transaction in Madinaty during the same period in 2025. The company said softer sales at its Banan project in Saudi Arabia, amid regional geopolitical uncertainty and the absence of major project launches during the quarter, also weighed on performance.

However, Domestic demand remained resilient, supported by strong sales momentum across flagship developments, including Privado, where sales doubled year-on-year, and SouthMed, which recorded 68-percent growth. TMG was able to register consolidated first-quarter 2026 revenue of EGP13.1 billion ($247.42 million), up from EGP9.4 billion ($177.54 million) a year earlier, driven by strong revenue recognition from flagship residential developments, rising hotel income, and expanding recurring revenue streams.

The Cairo-based developer also highlighted the strong post-quarter launch of The Spine, its mixed-use cognitive city within Madinaty, which generated approximately EGP30 billion ($566.73 million) in sales within just 15 days. The company also highlighted strong liquidity, with cash balances rising to EGP86.7 billion ($1.64 billion). 

Saudi expansion, real estate lift revenue; hospitality drives earnings

TMG’s real estate revenue rose 62% year-on-year to EGP6.1 billion ($115.23 million) during the quarter, driven by construction progress, most significantly the Banan project, which accounted for more than half of quarterly real estate revenue under the percentage-of-completion accounting method. TMG’s hospitality segment continued to emerge as a core profit engine as Egypt’s tourism recovery accelerated. Hospitality revenue increased 21% year-on-year to EGP4.3 billion ($81.23 million), while EBITDA surged 41% to EGP2.5 billion ($47.23 million). Occupancy across the hotel portfolio rose to 63%, while average room rates increased 15% to EGP13,677 ($258.39).

Recurring revenue streams, including hospitality, retail leasing, sporting clubs, and community services, generated EGP6.9 billion ($130.35 million) during the quarter, representing 53% of consolidated revenue. Other recurring income rose 26% year-on-year to EGP2.7 billion ($51 million), helped by growth in commercial leasing, transportation services, utilities, and contracting activities across TMG’s integrated communities. The group’s retail footprint spans about 441,000 square meters of gross leasable area, including Madinaty Open Air Mall and San Stefano Mall in Alexandria.

Hisham Talaat Moustafa’s TMG is scaling new heights

Hisham Talaat Moustafa, owning a 43.2% stake in TMG Holding, has been steering the real estate giant since its inception in 1974. The group now operates 11 hotels across Egypt through its majority-owned ICON Hospitality platform, including properties managed under global luxury brands such as Four Seasons Hotels and Resorts, Mandarin Oriental Hotel Group, Kempinski Hotels, and Steigenberger Hotels.

TMG ended March 2026 with total assets of EGP475.2 billion ($8.98 billion), up 9% from year-end 2025, while shareholders’ equity increased to EGP170.6 billion ($3.22 billion). Total debt stood at EGP14.7 billion ($277.75 million), primarily tied to hospitality expansion projects including Four Seasons Madinaty and Marsa Alam Resort. The company maintained a net cash position of about EGP71.9 billion ($1.36 billion).

During the quarter, TMG signed agreements with Mandarin Oriental to manage the historic Winter Palace Luxor and Old Cataract Aswan hotels. It also signed management agreements with Four Seasons and Steigenberger for hospitality assets on Elephantine Island in Aswan.