Taiba signs SAR 2.4M agreement to develop, operate 3 hotels in Madinah

Taiba Investments Co. signed final partnership agreement on May 17 with Osool Integrated Real Estate Co. to establish a special purpose vehicle (SPV) with a total investment size of SAR 2.4 billion.

Taiba will contribute SAR 300 million to the SPV, which is set to implement the development project for three hotels in Madinah, it said in a statement to Tadawul.

Taiba will oversee the development and renovation works, in addition to operating the three hotels. The hotels will comprise of 1,500 rooms under local and international brands.

The company added that the project will be financed according to each party’s ownership stake in the capital of the new entity, and in line with the progress of the project’s development works.

The financial impact was expected to reflect after each hotel is fully equipped and starts operations beginning in 2029.

Last November, Taiba signed a non-binding memorandum of understanding (MoU) with Osoul Integrated Real Estate Co., a subsidiary of the General Organization for Social Insurance (GOSI), to develop and operate three hotels in the central area of Madinah owned by Osoul Integrated. The project will be implemented through the establishment of a special-purpose vehicle, Argaam data showed.