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MoU signing
Dur Hospitality Co. signed a non-binding memorandum of understanding (MoU) with Smart Zone Real Estate Co., wholly-owned by stc, to develop a hotel within stc Square project in Riyadh.
The stc Square project is being developed by stc's wholly-owned subsidiary, Aqalat Company Ltd., the company said in a statement to Tadawul.
The MoU is valid for three months.
Dur will complete the studies required to establish a special purpose company, which will be owned by 80-90% by Dur and 10-20% by Smart Zone.
The new company will rent the 3,343 square meter plot of land, which is owned by the Smart Zone Company, for building and operating a hotel.
The proposed company’s capital and project’s development cost will be determined after completing the required studies.
Dur will develop an integrated and unique hotel in the Kingdom through the new company, equipped with the latest technologies within stc Square in Riyadh.
The company stated that the financial impact will be determined after signing the partnership agreement and determining the cost of development. Any significant developments will be announced in due course.
The signing of the MoU comes in line with Dur’s strategic expansion policy that aims to strengthen its position in the Kingdom’s hospitality sector by providing distinctive hotel products in line with Vision 2030.
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