Tourism Enterprise Co. (Shams)
Tourism Enterprise Co. (Shams) signed a non-binding memorandum of understanding (MoU) with Shuaa Capital Saudi Arabia (SHUAA) for potential 100% acquisition of hotels owned by the hospitality funds managed by SHUAA for SAR 735 million, excluding the real estate tax, according to a bourse statement.
The first hotel is Centro Waha by Rotana in Riyadh (Centro Waha). It is a four-star hotel representing Saudi SHUAA Hotel Fund 1. It consists of 290 hotel rooms, in addition to meeting rooms, food and beverage outlets, as well as sports facilities. The hotel was officially opened in October 2017.
The second hotel is Centro Shaheen by Rotana in Jeddah (Centro Shaheen), a four-star hotel, representing the Centro Jeddah Fund 1. It consists of 252 hotel rooms, in addition to meeting rooms, food and beverage outlets, and sports facilities. The hotel was opened in October 2016.
The third hotel is Dana Rayhaan by Rotana in Dammam (Dana Rayhaan), a five-star hotel, representing Dammam Rayhaan Fund 1. It consists of 285 hotel rooms, in addition to meeting rooms, food and beverage outlets, and sports facilities. It is expected to open in the near future.
The hotels are operated and managed by Rotana Hotel Management Co.
Rotana was established in 1992 and is considered one of the leading hotel management companies in the Middle East and North Africa (MENA).
The hotels are operated and managed by Rotana Hotel Management Co. Rotana was established in 1992 and is considered one of the leading hotel management companies in the Middle East and North Africa (MENA).
Rotana has more than 106 hotels in 24 cities in the GCC, the Middle East, Africa, Eastern Europe and Turkey. It manages its operations under its brand (Centro Hotels, Rotana Hotels & Resorts, Arjaan Hotel Apartments, Rayhaan Hotels & Resorts, and The Residences by Rotana).
The acquisition aims to diversify the company’s business activities, in addition to taking advantage of the opportunities in the income-generating tourism sector, in line with the government’s plan and Vision 2030 that aims to develop the tourism sector and increase the total number of annual visits to 100 million by 2030.
In addition, the deal support the board of directors’ plans, which include forming partnerships and alliances with international companies to help expand the company’s future business and aggrandize shareholders’ equity.
The MoU will be effective for 180 days after the signing date. Its renewal is subject to the approval of both parties.
Shams appointed Wasatah Capital as an advisor on the transaction.
The deal amount will be paid by Shams to SHUAA, as per the terms and conditions stipulated in the sales & purchase agreement (SPA) to be signed later for this purpose.
The company will conduct due diligence and negotiate final agreements during the memorandum duration.
The procedures for the proposed acquisition are subject to the approval of the relevant official authorities.
Any relevant developments will be announced in due course, the statement said, adding the deal does not have any related parties.
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