Taiba signs management deal with Accor for Novotel Madinah hotel

Taiba Investments building

Taiba Investment Co. signed, today, Sept. 21, a hotel management agreement with AccorHotels to operate four-star Novotel Hotel in Madinah – owned by Al Aqeeq Real Estate Development Co. - a fully-owned subsidiary of Taiba.

Under the agreement, Accor will manage and operate the Novotel hotel, which will be constructed on two plots numbered, 2018 and 2019, in the western part of the central area surrounding The Prophet’s Mosque in Madinah, according to a bourse filing.

The hotel will consist of 394 rooms and 20 suites along with other services and car park.

The contract has no specific value, as the operators receive 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.

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