SHUAA Capital Saudi Arabia has announced that it had signed, on behalf of the SHUAA Saudi Hospitality Fund I (the “Fund”), an agreement with Abdulla Fouad Holding Company to develop a Rayhaan by Rotana hotel in Dammam, Kingdom of Saudi Arabia.
The hotel will be built at an estimated cost of SR 260 million (some US$69 million) and will feature 240 rooms. The new hotel property will be situated in Dammam’s prime Corniche strip on the Al Asheraa Roundabout.
This transaction marks the third hospitality project announced by the Fund in the Kingdom of Saudi Arabia. The Fund has already initiated development of two other hotels in Jeddah, which will also be managed by Rotana, including a 5-star Rayhaan Hotel on the northern Corniche and a 4-star budget business hotel on Al Madinah Road.
Mr. Omar Al Jaroudi, Chief Executive Officer of SHUAA Capital Saudi Arabia, said: “This agreement represents another important milestone for the Fund and brings us closer to achieving our goal of developing eight hotel properties in the Kingdom. Over the coming months, we will unveil additional projects the Fund has in the pipeline. We are proud to have partnered with Abdulla Fouad Holding Company, one of the most reputable business groups in the Eastern Province of Saudi Arabia and would also like to extend our appreciation to our Fund’s strategic partner Rotana, for their continued support.”
Sheikh Abdulla Fouad, Chairman of Abdulla Fouad Holding Company, added: “We are delighted to have partnered with SHUAA Saudi Hospitality Fund I for the opportunity to play a key role in fulfilling His Royal Highness Prince Muhammad Bin Fahad’s vision of developing branded hotel properties in Dammam. We thank the SHUAA team for their diligent approach and look forward to maintaining a long and successful business relationship with SHUAA Capital Saudi Arabia. We would also like to commend our investment team for their valued efforts and professionalism in this deal.” Mr. Selim El Zyr, President and Chief Executive Officer of Rotana, commented: “We are very pleased with the Fund’s progress over the past two years and would like to reiterate our continued support to the Fund’s initiatives. Rotana’s market expansion into the Kingdom is progressing as planned and we would like to thank the SHUAA team for their professional approach to implementing the property development strategies. This project will allow us to better serve business and leisure travelers as well as the community of the Kingdom’s Eastern Province."
Mr. Diab Chidiac, Executive Director of Real Estate at SHUAA Capital Saudi Arabia added: “We are delighted to work with Abdulla Fouad Holding Company on this remarkable project. This is the Fund’s first investment in the Eastern Province. We have identified a niche market in Dammam and we intend to take advantage of it in the best interest of the Fund’s investors.”
Dammam is the governmental capital and a leading business hub in the Eastern Province, which has a growing population of over 3.7 million inhabitants and is the center of the Kingdom’s oil and petrochemical industries. The number of visitors to the Eastern Province has been continuously on the rise, as evidenced by the increase in air traffic at the King Fahd International Airport in Dammam, from 3.0 million passengers in 2005 to 4.2 million in 2009. Dammam is a convenient choice for business travelers who commute to nearby Jubail and smaller towns in the Eastern Province.