Seera inks new financing deal with SAIB for mid-market hotels

Seera Holding Group inked a long-term financing agreement with Saudi Investment Bank (SAIB), the company said in a bourse statement. 

The travel services provider terminated the deal inked with Albilad Capital last year to set up a private real estate investment fund.

The new agreement will go for developing the mid-market hotels via the company’s internal sources and a bank financing facility at competitive terms. 

In H2 2018, construction works started in six hotels, namely, Olaya Hotel – Comfort (Riyadh), Media Hotel - Comfort (Riyadh), King Fahd Road – Quality (Jeddah), Heraa Road Hotel – Comfort (Jeddah), and Roshan Mall hotel – Quality (Jeddah).

These hotels are expected to launch operations as of H2 2020.

In April 2018, Seera signed an agreement with Albilad Capital to set up a private real estate investment fund, managed by the latter. Tadawul-listed Seera will contribute six of its properties in Riyadh and Jeddah as an in-kind contribution to develop mid-market hotels. 

The hotels are operated under the Comfort and Quality brands owned by Choice International Co.

The step came in line with Seera's strategic transformation plan announced in December 2017, which included two main goals for the hotel division: providing the company with fixed cash flows and taking advantage of new opportunities in the mid-market hotel segment.