Dur Hospitality inks deal with stc to build new hotel in Riyadh
CONSUMER NEWS
Dur Hospitality Company has announced that it has signed an agreement with Smart Zone Real Estate, a wholly-owned unit of Saudi Telecom Company (stc) to build an innovative hotel in Riyadh.
The integrated and unique hospitality project will come up on a 3,343-sq-m area within the stc Square project in the Saudi capital.
A one-of-a-kind hotel development, it is set to offer quality services using Artificial Intelligence (AI) and other smart digital technologies, said Dur Hospitality in its filing to the Saudi bourse Tadawul.
For the new Riyadh hotel project, a special purpose vehicle will be established by the duo with an initial capital of SR25,000 (($6,660). The new comopany will be majority owned by Dur Hospitality (with 84% stake) while the rest will held by Smart Zone Real Estate.
As per the deal, the new company will lease 3,343 sq m plot of land owned by the Smart Zone Real Estate Company within the mixed-use stc Square project for the construction of the hotel.
The project will be proportionally financed according to the ownership percentage of each party in the share capital of the new company, provided that financing is carried out as per the project’s needs, with an amount not exceeding SR150 million ($40 million).
According to Dur Hospitality, the stc deal comes in line with its strategic expansion policy aimed at cementing its leading position in the Saudi hospitality sector through provision of modern and innovative hospitality products.
The hotel will introduce hitech features and digital amenities and provide a distinctive lodging experience for its guests using AI and digitization, it added. -TradeArabia News Service
