Osool Integrated Real Estate Company and Taiba Investments have agreed to jointly develop three hotels in the Northern Central Area of Madinah, Saudi Arabia, introducing approximately 1,500 new rooms to the city.
Valued at SR2.4bn ($634m), the agreement will result in the formation of a dedicated company between the two entities.
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Osool will own the hotels while Taiba will contribute SR300m towards the project. The hotels will be managed by both local and international operators.
The companies finalised the partnership following initial feasibility studies and the signing of a memorandum of understanding (MoU) in Riyadh.
Both parties plan to combine their expertise in real estate investment and hospitality management to oversee all stages of hotel development and operations.
Osool Integrated Real Estate Company CEO Feras Albanyan said: “We view this project as an integrated model that reflects our ability to develop strategic assets and transform them into high-quality hospitality destinations that support the Kingdom’s urban and tourism development objectives.”
This collaboration comes as Madinah’s hospitality sector experiences growth under Saudi Arabia’s Vision 2030, which targets the expansion of the tourism and religious hospitality infrastructure.
The project will support the objectives laid out in the country’s tourism development plans.
Through this initiative, Osool and Taiba aim to implement operational models that focus on the redevelopment of the properties, with the intention of maintaining the long-term viability of the investment.
Taiba CEO Sultan bin Badr Al-Otaibi said: “This project reflects Taiba’s expansion strategy driven by synergy-focused, value-creating institutional partnerships. It underscores our position as a preferred strategic partner for major corporations looking to develop flagship hospitality projects.
“This project extends a robust lineup of partnerships recently announced by TAIBA, reinforcing our capacity to spearhead pioneering developments, particularly in the Holy Cities, backed by our deep-rooted heritage in launching and operating premier destinations.”
Last month, Taiba and Awqaf Investment, the investment arm of the General Authority for Awqaf, opened the Makarem Burj Al Madinah Hotel & Suites in Madinah.
