Orascom Development Holdings, developer and largest owner of hotel rooms in Egypt, and LVMH, an international group with over 50 luxury brands, have signed up to build two luxury resorts, one in Oman and another in Egypt.

The French luxury group on Thursday said Orascom would finance the construction of the two resorts, expected to open in 2012, while LVMH would run them and get a percentage of sales and profits.

LVMH said it had created a unit called LVMH Hotel Management to run the resorts, which would be called Cheval Blanc, inspired by its Michelin-star hotel in the Alpine resort of Courchevel.

The French group said the resorts would give it exposure to the long-term growth potential of the luxury hotel sector as well as new selling points for its brands.

'Other projects are currently under study in exceptional destinations,' LVMH said in a statement. – Reuters