Dur Hospitality eyes more lands, 8 new hotels: CEO

25/03/2015 Argaam
Dur Hospitality Co. has its sights set on upping the number of its hotels to 14, as well as purchasing SAR 100-200 million worth of lands in new markets, chief executive officer Badr Al-Badr told CNBC Arabia.
 
Dur’s full-year profits are projected to grow at the same pace of 2014, he added. 
 
The company currently owns limited lands, which are unlikely to be hurt by the Saudi cabinet’s resolution on taxing undeveloped lands, Al-Badr said. 
 
About 20 percent of Dur’s investments totaling SAR 1.5 billion were allocated for residential complexes, with the remaining percentage for hotels. Riyadh Palace Hotel currently delivers up to SAR 20 million profit per year.
 
Dur, however, plans to exit other assets such as the garden sector. The My Garden project will be shut in three months, Al-Badr said. 
 
The company, which dominates a 10 percent market share, is also liquidating its securities portfolio, with SAR 62 million investments available for sale. It currently owns one residential complex, and manages three compounds in Jeddah, and two in Riyadh. 
 
Dur had previously secured a SAR 580 million financing agreement with Banque Saudi Fransi and Riyad Bank, of which SAR 120 million were allocated for various projects. 
 
The company earlier announced it will invest SAR 1.5 billion in developing 3 and 4-star hotels and luxury residential complexes. Dur aims to achieve a planned portfolio of 20 hotels and six residential properties by 2021 in Saudi Arabia.

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