Tourism Enterprise Co. Announces Contract Sign Off with Nokhbat Al-Malqa Hotel Company in Riyadh, in line with its new hospitality expansion strategy
| Element List | Explanation |
|---|---|
| Introduction | Tourism Enterprise Company (Shams) announces the launch of its first hotel project in Riyadh through the signing of a lease investment contract, under which the Company will lease and operate a 17-storey hotel in Riyadh (Al-Sahafa district). This comes as part of the strategic transformation the Company is undergoing, which aims to diversify the Company's sources of income and expand beyond the Eastern Province. The hotel is located in a prime area in the north of Riyadh. The Company affirms that this step is not the first, but rather the beginning of a carefully planned expansion path that will strengthen its operating revenues and its presence in the rapidly growing hospitality sector, with a positive impact on the growth of the Company's core business. |
| Date of Announcement of the Award | 2026-10-15 Corresponding to 1448-05-04 |
| Contract Subject Matter | Signing of a Lease Investment Contract |
| The Entity with Which the Contract was Signed | Nokhbat Al-Malqa Hotel Company in Riyadh, in line with its new hospitality expansion strategy |
| Date of Signing the Contract | 2026-10-15 Corresponding to 1448-05-04 |
| Contract Value | The total contract value is SAR 31,100,000, inclusive of VAT, for a term of ten (10) years, with the annual rent escalating in stages over the term. Annual rent is SAR 2,800,000 for the first and second years, rising to SAR 3,000,000 for the third through fifth lease years, and to SAR 3,300,000 from the sixth lease year until the end of the term. |
| Contract Details | Lease of a fully equipped 17-storey hotel for a term of ten Gregorian years commencing on 01/01/2027, with a grace period from 15/10/2026 to 31/12/2026. The Company will operate the hotel as part of its hospitality activities with effect from the contract signing date. |
| Contract Duration | Ten Gregorian years |
| Financial Impact and the Relevant Period | A positive financial impact on the Company’s results is expected, starting from Q1 2027. |
| Related Parties | none |
| Additional Information | This contract is the first project under the Company’s new strategy to build a distinctive hotel brand that meets economy-segment standards suited to the needs of the local hospitality market, in line with the tourism-sector targets of Saudi Vision 2030. The Company affirms its commitment to disclosing any subsequent material developments related to this contract in due course. |
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