Riyadh – Mubasher: Dur Hospitality Co. has signed acquisition and lease agreements with a total value of around SAR 232 million ($61.86 million).
The Saudi Arabia-listed company signed a binding agreement with Shada Homes to acquire 60% of its shares in consideration of SAR 61.2 million, according to a bourse statement.
The deal was in line with Dur’s strategy to expand in the hospitality sector, the company said.
Dur revealed that the agreement’s term was three months, adding that it can be extended upon mutual consent.
The deal will be financed by internal resources, along with credit facilities provided by a local bank, Dur noted.
Moreover, Dur Hospitality signed a SAR 170.68 million 10-year lease, operation, and management agreement for an underway five-star hotel in Makkah. The agreement will be effective at the beginning of 2020.
The hotel will be managed under Dur’s Makarem hotel brand.
