Taiba signs management deal with IHG for Crowne Plaza Riyadh hotel

Taiba Investments building

Taiba Investments Co. signed, today, Nov. 21, a hotel management agreement with InterContinental Hotels Group (IHG) to operate the four-star Crowne Plaza Taiba Hotel & Suites in Riyadh, which is owned by Al Aqeeq Real Estate Development Co., a fully-owned subsidiary of Taiba.

Under the agreement, IHG will manage and operate the Crowne Plaza hotel, which will be constructed in Olaya district at the intersection of Makkah Al Mukarammah-Takhassusi Road, according to a bourse filing.  

The hotel consists of 192 rooms and 110 serviced apartments with strong food and beverages (F&B) offering, including a lobby lounge, an all-day dining, a café, meeting space, as well as fitness and recreational facilities.

The contract has no specific value, as the operator receives a percentage of the revenue and profits in lieu of the hotel management and operations.  

The agreement has a term of 15 years from the date of hotel operations.

The financial impact is expected to start from 2025, Taiba added, indicating that no related parties are included in the deal.  

This is in line with the company’s strategic directions to focus on the real estate investment and development,  as part of its approved plan to execute a number of real estate hotel projects. Taiba continues to award the management and operation of its hotels to international operators that are experienced and qualified in this hospitality industry.  

According to data compiled by Argaam, Taiba awarded the main contractor’s works for its hotel project in Riyadh, which will be built on a land owned by its subsidiary, Al Aqeeq Real Estate, at a total value of SAR 377.5 million.