Knowledge Economic City Announces the Signing of Contracts Through One of its Subsidiaries with Marriott International to Manage and Operate a Group of Hotels in the Islamic World District Project
January, 2025
Knowledge Economic City Company (the Company or KEC) announces the signing of a contract by its 80% owned subsidiary, Al-Gharaa International Real Estate Development Company Limited, with Marriott International to manage and operate a group of hotels comprising 1,264 hotel keys as part of the first phase of the Islamic World District Project (IWD). The hotels will be developed through a real estate investment fund being established and constructed in the southern part of Knowledge Economic City.
Date of Announcement of the Award: 2024-10-03 Corresponding to 1446-03-30
Contract Subject Matter: A contract has been signed to manage and operate a group of hotels comprising a total of 1,264 hotel units, which are further divided into 456 hotel units managed under the Courtyard by Marriott brand, 558 hotel units under the Four Points by Sheraton brand, and 250 hotel units under the Residence Inn by Marriott brand.
The Entity with Which the Contract was Signed: Marriott International
Date of Signing the Contract: 2024-10-03 Corresponding to 1446-03-30
Contract Value: Marriott International charges a percentage of revenue and a percentage of the gross operating profit for the hotels it manages and operates.
Contract Details: Marriott International will manage and operate three hotels with a total of 1,264 hotel keys which are further divided into 456 hotel keys managed under the Courtyard by Marriott brand, 558 hotel keys under the Four Points by Sheraton brand, and 250 hotel keys under the Residence Inn by Marriott brand.
Contract Duration: 20 years, extendable on mutual agreement for additional two terms, each for 5 years.
Financial Impact and the Relevant Period: Additional revenues and proceeds from hotels operations expected in the fourth quarter of year 2027.
Related Parties: None.
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