Dur Hospitality has signed a nonbinding memorandum of understanding (MOU) with Smart Zone Real Estate Company, a wholly-owned subsidiary of Saudi Telecom Company (stc), to build artificial intelligence- (AI) powered hotel at stc Square project in Saudi Arabia’s capital Riyadh.
stc Square mixed-use project is being developed by stc’s real estate development arm AQALAT.
According to the MoU, Dur will undertake the required studies to establish a limited liability company via a joint venture with Smart Zone Real Estate Company.
Dur Hospitality will own 80% to 90% of shares in limited liability company, while Smart Zone Real Estate Company will own 10% to 20% stake.
This limited liability company will lease a 3,343m2 land within stc Square Project from Smart Zone Real Estate Company to build and run a full-fledged hotel project.
Envisaged to be the first of its kind in Saudi Arabia, the hotel will offer ‘state-of-the-art’ hospitality services, meet international standards and feature AI technologies.
Once the studies are completed by Dur Hospitality, a decision will be taken on the JV’s capital and the cost of project development, following which an agreement will be signed.
Dur Hospitality CEO Sultan Al-Otaibi said that this move is part of the company’s strategic expansion plan and bolsters its position in the country’s hospitality sector.
AQALAT CEO Feras Albanyan considers the hotel project to be an essential aspect of the stc Square Project.