Thursday 27/November/2025 – 10:07 PM
A report issued by the Tourism and Hotels Control Department of the Central Auditing Organization revealed, published via Egyptian Stock Exchange Concerning the business results of the subsidiaries of the Misr Hotels Company for the period ending on September 30, 2025, and reported to the company under No. (351) dated November 27, 2025, on a number of observations related to the treatment of fixed assets and taxes on inputs.
The accumulated depreciation at Misr Hotels Company exceeds half a billion
According to the report, the net fixed assets balance of Misr Hotels Company amounted to about 1.301 billion pounds on September 30, 2025, after deducting accumulated depreciation amounting to about 506.276 million pounds. The agency indicated that there were a number of inaccurate accounting treatments within some of the affiliated hotels.
The report explained that the balance of fixed assets included the following:
- About 660 thousand pounds were incorrectly listed as buildings and construction for the Nile Ritz-Carlton Hotel, and include the value of what was spent on replacement and renovation works such as the electrical control panel for the banquet department (purchased in July 2025), and the diesel tank fire panel (purchased in September 2025), when it should have been included in the machinery and equipment account.
- About 35 thousand pounds for the Safir Dahab Hotel were also mistakenly included in the tools and equipment account, and related to replacement and renewal expenses for purchasing an air compressor at the treatment plant (purchased in August 2025), when they should have been recorded in the machinery and equipment account.
The agency stressed the need to inventory similar cases and make the necessary corrections to reflect the correct impact on asset and depreciation accounts.
The report also indicated that there were 212 thousand pounds, representing value-added tax on development bills for the Safir Dahab Hotel during the fiscal year 2023/2024, related to kitchen equipment, pastry shops, and refrigeration and freezing units. These bills were completely added to the asset accounts without deducting the input tax, in violation of what is stipulated in Articles (22 and 30) of the Value-Added Tax Law No. 67 of 2016.
The report pointed to the company’s response on June 30, 2025, which clarified that this tax would be proven as soon as the tax consultant finished obtaining a fatwa from tax research regarding the company’s right to recover it and include it as input tax.
The agency called for the necessity of inventorying all similar cases until September 2025, recording them in the company’s books, and examining ways to benefit from deducted taxes on inputs in accordance with the legal provisions, because of this direct impact on asset balances and depreciation.
