DUBAI: Dubai-based Jumeirah Group will operate its first hotel in Saudi Arabia, which is scheduled to open by early 2019.
Jumeirah Group’s five-star hotel, within walking distance of the Grand Mosque in Makkah, will have 1,033 guest rooms housed in four towers as well as an executive lounge, a gym and more than 90 retail units. It would also operate 93 villas housed with the hotel compound.
Jabal Omar Development Company will develop the five-star Jabal Omar Jumeirah Makkah Hotel under the terms of the agreement with Dubai Holding, Jumeirah Group’s mother unit.
With the Makkah hotel deal, Jumeirah Group will now have 22 hotels under its wing, housing some 7,164 rooms.
Dubai’s Emaar Properties last month also signed an agreement to open an Address Hotels + Resorts-branded property in Makkah, with 1,490 hotel rooms and suites, and is scheduled to start operations in 2019.
Edris Al-Rafi, the chief executive of Dubai Holding, said, adding the Makkah hotel in its portfolio was a “key milestone” in the company’s global ambitions.
“As the company embarks on its next phase of growth, adding such a strategic and large hotel to the portfolio is a key milestone in our ambitious international expansion strategy. Jabal Omar Jumeirah Makkah Hotel will significantly boost its growth in the coming years. It will also mark the group’s first presence in the Kingdom of Saudi Arabia in Makkah, one of the holiest sites in the world and the highest in real estate value.”
Yasser Al-Sharif, the chief executive of Jabal Omar Development Company, meanwhile said it was “pleased to work with an established global hospitality brand” such as Jumeirah Group.
Jabal Omar Development is the firm responsible for developing more than 2 million square meters of hotel and residential tower clusters overlooking the Grand Mosque.
A JLL report last year noted that Makkah was one of the biggest hotel markets in the Kingdom with 27,000 rooms, compared with 11,000 in Riyadh and 9,400 in Jeddah. It is estimated that around 75 percent of the demand from pilgrims is accommodated in hotels, with the remaining 25 percent in other forms of accommodation.
Many hotels in Makkah have traditionally only operated during peak months, but the JLL report revealed that with the entry of more international operators, this pattern is now changing, with more hotels operating throughout the year.
There are plans to roughly double the capacity to accommodate both Umrah and Haj visitors to around 15 million and five million respectively by 2020.
Dubai’s Jumeirah Group to operate five-star hotel in Makkah
Dubai’s Jumeirah Group to operate five-star hotel in Makkah
Closing Bell: Saudi main index dips slightly to 10,912
RIYADH: Saudi Arabia’s Tadawul All Share Index was broadly stable on Tuesday, as it shed just 4.61 points or 0.04 percent to close at 10,912.43.
The total trading turnover of the benchmark index stood at SR3.99 billion ($1.06 billion), with 68 of the listed stocks advancing, and 194 declining.
The Kingdom’s parallel market Nomu gained 0.68 points to close at 23,358.18.
The MSCI Tadawul Index also edged up by 0.03 points to 1,467.56.
The best-performing stock on the main market was Saudi Cable Co. The firm’s share price rose by 9.72 percent to SR161.40.
The share price of Almasane Alkobra Mining Co. advanced by 9.25 percent to SR108.70.
Al-Jouf Agricultural Development Co. also saw its stock price climb by 6.46 percent to SR48.10.
Conversely, the share price of Tabuk Agricultural Development Co. edged down by 3.67 percent to SR7.61.
On the announcements front, Dar Al Majed Real Estate Co. said that it signed a Shariah-compliant banking facilities agreement with the Arab National Bank valued at SR500 million.
In a Tadawul statement, the company revealed that the agreement is aimed at supporting the firm’s expansion plans and financing its future projects in line with its approved strategic plan.
The financing term extends for up to five years and includes a grace period of two years.
The share price of Dar Al Majed Real Estate Co. declined by 0.99 percent to SR9.
Saudi Paper Manufacturing Co. said it signed a credit facilities agreement with Kuwait Finance House Bahrain, which includes facilities allocated to finance working capital and medium-term facilities amounting to $40 million.
In a Tadawul statement, the company revealed that the working capital facilities extend for 12 months and are renewable.
The medium-term facilities last for 48 months, including a six-month grace period.
The credit facilities will be used to cover the company’s working capital for operational activities, plans and expansions in purchasing raw materials, in addition to restructuring medium-term debts to improve cash flows.
The share price of Saudi Paper Manufacturing Co. edged down by 1.09 percent to SR58.80.
