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Dur Hospitality has seven projects worth SAR 1.2 billion in the pipeline, to be undertaken over the next 18-24 months, chief executive officer Badr Al Badr told Argaam.
The first of these developments, Marriott Executive Apartments Riyadh, will be completed by 2018.
Dur reported a net profit of SAR 24.6 million for the first quarter, a 22.2 percent drop year-on-year (YoY).
Q1 profit was hit by lower revenue in Riyadh, due to fierce competition and lower demand, Al Badr said.
The company is also expected to incur SAR 500,000 per annum in municipal service fees, he added.
Last year, Saudi Arabia hiked municipal fees for services such as business licensing, as the Kingdom looked to increase revenues following the plunge in oil prices.
Going forward, Dur is adopting a cost-cutting policy to trim general and administrative expenses and other selling and distribution costs, Al Badr said.
The chief executive added that he expects the hospitality sector in Makkah and Madina to improve significantly in Q2, due to higher occupancy rates during the Haij and Umra season.
However, the sector is expected to record weak performance in other regions in Q1 due to the economic slowdown and seasonal factors, given that Q2 will fall during the holy month of Ramadan and the Eid Al Fitr vacation, he noted.
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