Real-estate developer Knowledge Economic City (KEC) has partnered with Archipelago International to form a hospitality management company in Madinah, Saudi Arabia.

Under the strategic joint venture agreement, both parties will hold equal shares in the newly established company.

The new company is tasked with developing a Saudi hotel brand and will oversee the delivery of its first project in Madinah, which involves the construction of a hotel comprising around 2,500 keys.

The hotel will be among the largest assets launched by KEC and a significant development in Saudi Arabia’s hospitality sector.

The partnership aims to manage and operate hotels and related assets within KEC’s projects in Madinah, with potential for future expansion across other locations in the country.

The operational governance of the new entity will remain unified, supporting a clear mandate focused on efficient management and asset optimisation.

The initiative aligns with efforts to diversify Saudi Arabia’s hospitality industry while increasing employment opportunities by enabling national talent throughout various operational stages.

Plans also include franchise and management models to support broader growth across the kingdom.

Archipelago International operates as Southeast Asia’s largest privately owned hotel management group, managing over 45,000 rooms in more than 200 hotels spanning Southeast Asia, Latin America, the Middle East, the Caribbean, and Oceania regions.

KEC is regulated by the Economic Cities and Special Zones Authority and plays a role in driving urban and economic changes within Madinah through partnerships.

In March, Archipelago opened Aston Rubi City Suites in the Naco district of Santo Domingo, Dominican Republic.

The 179-room property is designed as apartments and features amenities such as smart home technology, including Google Nest devices.