Singapore-based hotel group General Hotel Management (GHM) has signed an agreement to open a new Chedi hotel on the Red Sea in El Gouna, Egypt.

The Chedi El Gouna will be developed on the foundation of an existing 86-key beachfront property and will mark the third time the hotel brand has collaborated with Switzerland-based operator Orascom Hotels Management.

The two groups first came together for The Chedi Andermatt in Switzerland and later partnered on The Chedi Luštica Bay on the coast of Montenegro.

A statement from GHM labelled El Gouna Orascom Development’s “flagship town”.

The destination offers over 10km of shoreline on the Red Sea coast and is home to 18 hotels ranging from three to five stars, two golf courses and a selection of watersports.

“When you’ve built the kind of momentum we have in Andermatt and Montenegro, it was only a matter of time before a third effort was going to have to come off the ground,” said GHM chief executive Tommy Lai.

“Given Orascom’s deep roots in Egypt and in El Gouna, a place on the Red Sea was all but inevitable.”

Jens Freise, chief commercial officer of Orascom Hotels Management, added: “We are excited about our partnership with GHM.

“We are confident that The Chedi El Gouna will further enhance the town’s gorgeous spirit with its intuitive luxury experience.”

GHM’s portfolio includes The Chedi Muscat, Oman and The Chedi Al Bait, Sharjah, UAE.

Including its new site in Egypt, the hotel group has nine properties currently under development in destinations such as India, Taiwan, Thailand and the Maldives.