Riyadh – Mubasher: Seera Group Holding and Alula Development Company have signed an agreement to establish a joint venture to develop and operate a 215-room Clarion Hotel worth SAR 170 million.

Spanning over an area of 9,000 square metres, Clarion Hotel will be located in the Central Business District of AlUla, according to a bourse filing on Wednesday.

Seera Group will hold a 51% stake in the joint venture, and Alula will own the remaining stake.

The companies will contribute 30% to the value of the project, set to start operating in the first quarter (Q1) of 2024, while 70% of the value will be financed in accordance with Shariah.

The joint venture company will also sign a 50-year lease agreement with AlUla Development for the land on which the project will be built.

The annual profits from the hotel operations before tax, depreciation, and amortization is forecast to range from SAR 25 to 30 million.

Source: Mubasher

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