PROJECTS: Saudi-based Seera signs MoU to develop mid-market hotels

Under MoU, Tourism Development Fund to finance hotels totaling 1000 keys across eight cities

  
Image used for illustrative purpose. Workers stand on a metal scaffolding, placed on the wall of a hotel ahead of preparations for the new tourism season in Athens's Syntagma square March 8, 2015. Investors are expected to pump more money into buying, converting or building hotels in 2015 than in any year since the start of the global financial crisis, with a focus on budget and 'buzz'. REUTERS/Kostas Tsironis

Image used for illustrative purpose. Workers stand on a metal scaffolding, placed on the wall of a hotel ahead of preparations for the new tourism season in Athens's Syntagma square March 8, 2015. Investors are expected to pump more money into buying, converting or building hotels in 2015 than in any year since the start of the global financial crisis, with a focus on budget and 'buzz'. REUTERS/Kostas Tsironis

REUTERS/Kostas Tsironis

Saudi Arabia-based travel and tourism group Seera Group (formerly Al Tayyar Travel Group) announced on Monday that it has signed a Memorandum of Understanding with the Tourism Development Fund to finance a project to develop mid-market hotels across the kingdom.

The company said in a stock exchange statement that the hotels, totaling 1000 keys, would be developed in Riyadh, Jeddah, Al-Baha, Abha, Taif, Al-Jawf, Hail and Al-Ula cities.

The statement didn't disclose the quantum of financing but said the MoU is valid for six months.

Seera is targeting to establish 6,000 hotel rooms by 2025, according to its website. The company is master franchisee of Choice Hotels, the world's second largest hotel company, to operate their Comfort, Quality and Clarion brands in the Middle East.

In June, Saudi Arabia's Ministry of Tourism had announced the launch of the Tourism Development Fund with an initial capital investment of $4 billion to boost investments in the tourism sector.

(Writing by Syed Ameen Kader; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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