Taiba unit signs deal with Marriott to manage hotel in Riyadh

Taiba Investments Co. headquarters

Taiba Investments Co. announced that its 84%-owned subsidiary, Smart Zone Hotel Co., signed a contract on July 29 with Marriott International to manage and operate a hotel under the Marriott brand.

The hotel is planned to be built within the mixed-use stc Square project in Riyadh, Taiba said in a statement to Tadawul.

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It comprises of 159 hotel rooms, along with entertainment facilities and multi-purpose meeting rooms.

Smart Zone will receive a percentage of the revenue and a percentage of the hotel's total operating profit for management and operation, the statement added.

The 20-year contract can be extended twice, for five years each, the statement pointed out, adding that the financial impact of the contract will be reflected after the start of operation, which may be during Q4 2027.

In a separate statement, Taiba said that it obtained a Shariah-compliant Murabaha financing from Bank Albilad on July 29, worth SAR 150 million.

The financing period is 10 years, including a grace period of three years, the statement highlighted, noting that it had provided a promissory note as a guarantee.

The funds aim to finance the project that will be established in accordance with the partnership agreement signed with Smart Zone Real Estate Co. (wholly owned by stc) to develop and operate a hotel within the mixed-use stc Square project.