| Element List | Explanation |
|---|---|
| Introduction | Seera Group Holding is pleased to announce the signing of an investment and joint venture agreement with AlUla Development Company to establish a joint venture to develop and operate a 215-room Clarion Hotel under the CHOICE brand on a 9000 square meter plot of land in the Central Business District of AlUla. |
| Date of Announcement of the Award | 2022-02-02 Corresponding to 1443-07-01 |
| Contract Subject Matter | Establishment of a joint venture to develop and operate a 215-room Clarion Hotel in the Central Business District of AlUla. |
| Date of Signing the Contract | 2022-02-02 Corresponding to 1443-07-01 |
| Contract Value | The value of the project is 170 million SAR, the partners will contribute 30% of the capital, and 70% of the project value will be financed in accordance with Shariaah. |
| Contract Details | Signing an agreement to establish a joint company with 51% ownership by Seera Group and 49% ownership by AlUla Development Company. The joint venture company will also sign a lease agreement with AlUla Development Company to obtain the land on which the project will be built for a period of 50 years, and the hotel will be owned by the joint venture company during the lease period. It is expected that the hotel will start operating in the first quarter of 2024. |
| Contract Duration | 50 years |
| Financial Impact and the Relevant Period | The financial impact and the period on which it will be reflected: The annual profit from hotel operation before tax, depreciation and amortization is expected to range from 25 to 30 million SAR. |
| Related Parties | None |
