Egypt's Orascom Hotels and Development said on Thursday it has set up a joint venture with a Shuaa Capital private equity fund to build five business hotels in Egypt.

Orascom would have a 51 stake in the project, which would require total investment of about $125 million, Orascom said.

The other 49 percent will be owned by Shuaa Hospitality Fund, which is run by Dubai-based private equity firm Shuaa Partners, it added.

Orascom Hotels on Tuesday posted a 129 percent rise in net profit for the first quarter of 2008 to 82.09 million Egyptian pounds ($15.29 million).

The company said in March it would list its shares in Switzerland where its owner Samih Sawiris is planning to build an Alpine hotel resort. It would have a secondary listing in Egypt. - Reuters