Saudi Arabia’s Seera Group Holding has cancelled its agreement with AlUla Development Co. to build a 170 million Saudi riyals ($45.33 mln) Clarion hotel in the central business district of AlUla due to higher project costs than agreed.
The two entities decided to terminate all existing contracts with consultants, designers and developers, as well as settle any existing financial claims, Seera said in a statement to the Saudi stock exchange.
The two companies have contributed SAR14 million so far, of which SAR4.68 million was incurred as expenses. The remaining amount will be distributed as per their respective shareholding percentages.
In February 2022, Seera and Alula Development signed an agreement to establish a joint venture to develop and operate a 215-room Clarion Hotel.
(Writing by D Madhura; Editing by Anoop Menon)