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Logo of Seera Group Holding
Seera Group Holding signed today, Feb. 2, a 50-year investment and joint venture agreement with AlUla Development Co. to establish a joint venture to develop and operate a 215-room Clarion Hotel under the CHOICE brand on a 9,000 square meters plot of land in the Central Business District of AlUla.
The project’s value is SAR 170 million, where the partners will contribute 30% of the capital, with the remaining 70% of the value to be financed in accordance with Shariah, according to a bourse filing.
Under the agreement, the joint company will be 51%-owned by Seera Group and 49% by AlUla Development.
The new consortium will also sign a lease agreement with AlUla Development to obtain the land on which the project will be built for a period of 50 years, and the hotel will be owned by the joint venture company during the lease period.
The hotel is expected start operating in the first quarter of 2024, the statement added.
The annual profit from hotel operation before tax, depreciation and amortization is assessed to range from SAR 25-30 million.
No related parties are included to the deal.
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