Dur Hospitality has announced the signing of a nonbinding memorandum of understanding (MoU) with “Smart Zone Real Estate Company,” a wholly-owned subsidiary of Saudi Telecom Company (stc). The MoU aims to construct an innovative hotel in Riyadh’s stc Square project, developed by stc’s real estate development arm AQALAT.
As per the MoU, Dur will conduct the necessary studies to set up a limited liability company (The Project) through a joint venture with “Smart Zone Real Estate Company,” with 80% to 90% of shares to be owned by Dur Hospitality and 10% to 20% owned by Smart Zone Real Estate Company. Once launched, the project will lease a 3,343-square-meter land within stc Square Project from Smart Zone Real Estate Company to develop and operate a full-fledged hotel project. The first-of-its-kind in the Kingdom, the hotel will offer state-of-the-art quality hospitality services, conforming to the highest international standards, and adopt cutting-edge Artificial Intelligence technologies. Upon the completion of the studies, the JV’s capital and the project development costs will be decided, and the agreement will be signed.
To this, Dur Hospitality CEO Mr. Sultan Al-Otaibi expressed his pleasure in signing the MoU with “Smart Zone Real Estate Company,” as Dur thrives on constructing and developing a hotel embracing the latest technologies. He added that this serves Dur’s strategic expansion roadmap and enhances its market-leading position in the Kingdom’s hospitality sector. Committed to delivering an unforgettable hospitality experience, Dur aims to keep pace with the growth in tourism and hospitality industries and drive efficiencies through digital transformation by promoting ultra-modern hotel products and redefining services to clients of all segments. Al-Otaibi considered the project a quantum leap in the hospitality sector in the Kingdom and the region that will bring top AI and automation experiences, providing guests with a distinctive stay while diversifying revenue streams and strengthening the tourism sector, a core pillar of Saudi Vision 2030.
In turn, AQALAT CEO Mr. Feras Albanyan stated that the hotel project is considered a crucial element of the stc Square Project which will be the first innovative mixed-use project, offering smart solutions and products to the business, retail, and entertainment sectors. He also expressed his satisfaction with partnering with Dur, which is recognized for its extensive record in developing and operating a broad portfolio of hotels across the Kingdom of Saudi Arabia. Albanyan added that the project is considered one of the smart solutions planned by stc subsidiaries that highlight stc’s strenuous efforts to deliver the best smart urban services and solutions. stc also strives to meet the highest global smart city standards by staying abreast of global technological advancement in real estate development and implementing them inside the Kingdom of Saudi Arabia.