18/04/2025
This is concisely my experience about investing in Egypt, after their Pickalbatros hotel group bought the hotel company where my property is located.
Dear fellow Sharmaweya, whether you know me or not, but I live in Sharm and Egypt since 2005. I have published a book about my first impressions of Egypt, in 2011, and several blogs mostly about the hotels and real estate, and occasionally the Estonian media ask my comment or a story about Egypt, mostly for the travel pages. An Estonian TV station even visited our Minufiya home back in 2013, they liked it very much. I also admin some groups for the English-speaking guests and residents of Sharm.
This post here now is my experience from investing into Egypt. When my parents died, then I sold the land I inherited in Estonia, and in 2014 I bought an apartment in Laguna Vista Beach and Residence - which then belonged to Balbaa Group. And in the beginning it was a perfect investment. I rented the apartment via Airbnb and in 2017 I was #7 among all apartments in Sharm, with average reviews 10/10 (Four Seasons was 9/10 😉). All my guests loved the free use of Laguna Vista hotel and the beach, that is the most important item of my contract and is the reason why I chose to buy in Laguna Vista, and not in Sea Beach or Domina, or any other beachfront project.
But in 2019, PICKALBATROS GROUP bought the company that owns the Laguna hotels and the Residence. They never presented themselves to our owners, never sent any information even out of common courtesy, of what their plans are or what we can expect. Nothing. Like we did not even exist...
1 September 2019 they closed the Beach hotel for renovation. We lost access to hotel facilities incl the beach, and they did not offer an alternative, and did not compensate in any way...
~1 April 2021 the renovated hotel opened. Owners we began using the hotel and the beach, as before. But our tenants were not allowed in...
On 3 April 2023 we had a meeting with police at the hotel because again the security did not allow my tenants in and General Manager called the police. We sat down and read my contract, and we established with police help that I was right and our tenants have equal right to use all the hotel facilities, 24h. Unlimited by hours. It seems that no one of Pickalbatros hotel management had read our contracts 🤷🏼♀️ so all the time they were creating new rules for us based on fantasy or imagination.
For 1 month all was beautiful - the owners we used the hotel as we are supposed to - and also our tenants. We had tenants from Ukraine and Great Britain and I was expecting next tenant from Dubai...
Then on 23 April 2023 the hotel closed access to anyone from the Residence (apartment or villa owners, or tenants). Their security refused to let us in, w bas.
At the same time we learned that Pickalbatros is making offers to the unit owbers, and also shop owners in El Khan - to buy back the unit, for very small price like maybe 900000 LE 1BR or 2BR, furnished. In May 2023 this was ~30000usd. The original price of 1BR in 2010 was ~60000usd and of 2BR ~80000usd and higher (incl private duplex roof or garden). The owner company (El Massya, purchased from Balbaa and owned by Pickalbatros) would not recognise sales to anyone else, and refused to let the new owners into their property, until people gave up and sold the unit to El Massya.
The same tactics they use with shops in El Khan where the owners still have on average 10 years left in their contracts.
Further, in August 2023 the hotel stopped the maintenance of my garden - of course they should maintain all gardens! And then they closed my garden water - they chopped off the tap and physically closed the water with some plastic material. So my garden lawn 60 sqm died... I keep watering my hedges manually, but I consider it is personal vengeance and harassment against my person, for daring to be critical of this kind of 'management' of affairs by brutal force and not by good intentions or cooperation.
Then in September 2023 I called the police and made a report against hotel company, about they closed the garden water. Because I went to the police station, then I learned, that the hotel company had filed a case against me for 'damaging the landscape' in the compound. This was a fabricated case based on fantasy again, but the court had already decided that I was guilty, and the verdict was for me to go to the prison for 6 months. Yes! Me, a very supportive foreign investor and trusting to buy property in Sharm el Sheikh, where I am also very supportive about all tourism developments over all 20 years that I live here - in good or in bad times... This kind of person, mither of two girls now in college alhamdulillah - Pickalbatros believes should sit in prison because I protest against their ways and their morals??
I now needed a lawyer... and I found him right in the court house when I was there about my police report that the hotel closed the garden water. He was sitting there waiting for his case, and we chatted while waiting and he sounded intelligent, and I took his number, just in case.
Then I learned about the court verdict, and I called this lawyer.... And he won my case and the verdict was overturned, as of course I am not guilty.
But after that (from October 2023 until today) nothing more happened, while I kept paying him small amounts all the time. But he has no proof of cases and only has excuses all the time...
So, last week I asked other Sharmaweya for a good lawyer.
I met with that lawyer, and he seems punctual and keeps the promises and agreed times. But he wants $300...600 to even open the damages lawsuit about the prison case! And $1000...2000 to open the hotel access and maintenance (breach of contract) case! 🙄🤷🏼♀️🤷🏼♀️ Even the Cairo lawyers that my neighbours use, do not ask so much, or quote their price in US dollars! What valid currency is this...
With my lawyer who I will stop of course, I paid him:
3782LE in 2023/10, for my prison aquittal case. This he finished.
3350LE in 2023/11/30, to file the damage compensation case. No proof he filed anything.
5000LE in 2024/02/11, to file the main case about breach of contract and hotel access. No proof he filed anything...
2000LE in 2024/10/20, to file the case about they cut my garden water and my garden almost died. No proof he filed anything...
I trusted him so long because i expected things take long here, like a year or longer, in most cases. And because genius people are often irregular in behaviour then i thought he is maybe also - smart but unconventional. 🤷🏼♀️ I am smart and unconventional! 😅🤷🏼♀️ In October I got suspicious, if he even is a lawyer. So I went to Sharm main police station in Nabq and asked about him. The policemen knew him and they told me he is a 'good person' AND THEY CALLED HIM. They have his phone number. So, inshallah he is a lawyer, or maybe he is good in making friends and contacts. 🤷🏼♀️
But again he gave me excuses but did not present any proof about any cases. 🤷🏼♀️🤷🏼♀️ So, khalas, total ~14000LE - we can say it is all for my imprisonment case. I have no proof I paid him anything, because all cash.. But I registered everything in my notebook, for myself, and I shared all this information with my neighbours and with the foreign residents in Sharm.
So - dear Egyptians here:
Who in Egypt can a person, a foreigner trust, if you cannot trust even a leading hotel chain, and not even the lawyers?? (So far everyone I have asked, they advise me to not use any lawyer based in Sharm...) 🧐🤔
