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Dur Hospitality Co. signed, today, Sept. 16, a partnership deal with Awqaf Investment Co., the investment arm of General Authority of Awqaf (Endowment), to set up a special purpose vehicle and develop land plot number (125) in Madinah.
Under the partnership agreement, Dur will own a 49% stake in the new entity, while the remaining 51% will be held by the General Authority of Awqaf.
The new company, which will have a seed capital of SAR 25,000, will lease land plot No. (125) in Madinah to develop a five-star hotel, which will be operated by Makarem Hotels.
The project will be financed pro-rata, on condition that the total funding will not exceed SAR 250 million.
The new agreement is part of Dur’s strategy, which aims to gain presence in Madinah and develop an integrated system for the company’s hotels in Makkah and Madinah, in line with Vision 2030.
In April, the Saudi hospitality service provider received the approval from the board of directors of Awqaf Investment Co., the investment arm of General Authority of Awqaf (Endowment), to set up a special purpose vehicle, Argaam reported.
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