Knowledge City's subsidiary inks 5 contracts for hotels management, operation

Knowledge Economic City Co.'s (KEC) 80%-owned subsidiary Al Geraa International Real Estate Development Co. signed today, Oct. 3, five contracts for the management and operation of the first phase of hotels coming under the Islamic World District Project (IWD).

 

Being established in the southern part of Knowledge Economic City, these hotels will be developed through a real estate investment fund.

 

For more news and details on the projects

 

In separate statements to Tadawul, the company disclosed details of the five contracts, as follows:

 

The first contract was signed with Hilton Worldwide to manage and operate three hotels:

 

Under the deal, Hilton will manage and operate a group of hotels comprising a total of 1,415 keys. As many as 732 rooms will be managed under the Hilton Garden Inn brand, while 400 others will come under Hilton’s Hampton brand and 283 suites under Hilton’s Home2 Suites.

 

The contract term is 15 years, extendable by mutual agreement for two additional terms, each for five years.

 

Hilton Worldwide charges a percentage of revenue and a percentage of the gross operating profit for the hotels it manages and operates.

 

The second contract was signed with Marriott International to manage and operate three hotels:

 

Marriott International will manage and operate three hotels with a total of 1,264 hotel keys, divided into 456 rooms to be managed under the Courtyard by Marriott brand, 558 keys under the Four Points by Sheraton brand, and 250 others under the Residence Inn by Marriott brand.

 

The contract is valid for 20 years, extendable by mutual agreement for two additional terms, each for five years.

 

Marriott International charges a percentage of revenue and a percentage of the gross operating profit for the hotels it manages and operates.

 

The third contract was signed with InterContinental Hotels Group to manage and operate three hotels:

 

The deal with InterContinental entails managing and operating some hotels comprising 1,057 rooms in total. Accordingly, 350 hotel keys will be managed under the Holiday Inn brand, 505 others under the Holiday Inn Express brand and 202 suites under the Holiday Inn Suites brand.

 

The agreement runs for 15 years, extendable by mutual agreement for two additional terms, each for five years.

 

InterContinental Hotels Group charges a percentage of revenue and a percentage of the gross operating profit for the hotels it manages and operates.

 

The fourth contract was signed with Radisson Hospitality to manage and operate two hotels:

 

Under the contract, Radisson Hospitality will manage and operate two hotels with 757 hotel keys, divided into 611 and 146 rooms and serviced apartments under the Park Inn by Radisson brand, respectively.

 

The contract term is 15 years, extendable by mutual agreement for two additional terms, each for five years.

 

Radisson Hospitality charges a percentage of revenue and a percentage of the gross operating profit for the hotels it manages and operates.

 

The fifth contract was signed with Archipelago International Group to manage and operate two hotels:

 

Archipelago International Group will manage and operate two hotels with a total of 649 keys, including 519 Aston Hotel rooms and 130 apartments under the Aston Residence brand.

 

The deal is valid for 10 years, extendable by mutual agreement for two additional terms, each for five years.

 

Archipelago International charges a percentage of revenue and a percentage of the gross operating profit for the hotels it manages and operates, according to the company.

 

With a long-standing portfolio of 11 award-winning brands, Archipelago International is a reputable hospitality group with more than 45,000 rooms and residences in over 200 locations across Southeast Asia, the Caribbean, the Middle East and Oceania.

 

All aforementioned companies will leverage the smart infrastructure provided by KEC in its Knowledge Economic City, which is supported by smart transportation that connects the hotels areas to other destinations, including the Haramain High-Speed Train and adjacent projects, besides open green areas, including parks and pedestrian pathways.

 

They will leverage these value-added elements to provide their guests with an exceptional hospitality experience. Additionally, the hotels will offer services such as meeting rooms, all-day dining, cafés and gyms.

 

KEC also indicated that the expected financial impact from signing the five contracts is poised as additional revenues and proceeds from hotels operations in Q4 2027. It noted that there are no related parties to the deals.