Dur Hospitality has signed a partnership agreement with Smart Zone Real Estate Company, owned by Saudi Telecom Co (stc), to build and operate a hotel in the Saudi Arabian capital city of Riyadh.
The agreement includes forming a special-purpose company for the hotel development project.
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According to the agreement, the new company will be 84% owned by Dur Hospitality and 16% by Smart Zone Real Estate Company.
It will have an initial capital of SR25,000 ($6,659.98). Financing will be granted as per the requirements of the project and will not exceed SR150m ($39.95m).
stc-established real estate development company AQALAT CEO Feras Albanyan said: “We are excited to partner on this project with Dur Hospitality, one of the leading national companies in hotel development and operation in the Kingdom.”
Saudi’s first full-fledged smart hotel will be constructed within the stc’s mixed-use Square project in the capital.
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By GlobalDataThe new company will lease 3,343m² of land owned by the Smart Zone Real Estate Company for the project.
In October 2022, both parties signed an MoU, followed by preparatory studies for developing the new company to create and manage a hotel in Saudi Arabia.
Dur Hospitality CEO Sultan Al-Otaibi said: “Dur has diligently worked on the studies required to set up The Project Company, which will embody Dur’s strategic expansion roadmap and its role in Saudi hospitality’s digital transformation journey.
“The hotel will embrace next-generation technologies with ultra-modern digital designs, in line with the top international standards.
“This joint venture supports Dur Hospitality’s direction to expand strategic partnerships with leading institutions in the Kingdom to develop top-notch hotels and increase the contribution of the tourism sector to the Kingdom’s GDP, in line with Saudi Vision 2030.”
