The marketing and operational assistance agreement between both companies, which is due to expire at the end of 2007 will not be extended.

As of 1 January 2008 the Jolie Ville hotels in Sharm El Sheikh and Luxor will therefore no longer be part of the Swiss hotel group's portfolio.

The decision concerns the Jolie Ville Mövenpick Resort & Casino Sharm El Sheikh, Jolie Ville Mövenpick Golf & Resort Sharm El Sheikh and Jolie Ville Mövenpick Luxor Resort, all of which will continue to be managed under the brand of Mövenpick Hotels & Resorts until the end of the year.

"We would like to thank Mr. Hussein Salem and Jolie Ville Hotels Management Co. for the good co-operation over the past 18 years. The partnership was instrumental in enabling us to take our first steps in Egypt and the Middle East," said Jean Gabriel Pérès, President & CEO Mövenpick Hotels & Resorts. "We now wish Jolie Ville Hotels Management Co. every success for the future."

"Egypt has always been an extremely attractive market for Mövenpick Hotels & Resorts," explained Josef Kufer, Senior Vice President Africa Mövenpick Hotels & Resorts. "Indeed we have just signed management agreements for new deluxe cruisers on the Nile and Lake Nasser, underscoring our strategic commitment to Egypt in the future and our intention to expand further in this market."

Because of the rapid growth of the international hotel chain, the board of Mövenpick Hotels & Resorts has decided to only enter into management contracts and no longer into technical or franchised agreements. This decision was reached in order to protect the branding initiatives and to guarantee the renowned Mövenpick Hotels & Resorts Swiss values and quality standards.