KEC inks JV agreement to set up residential rentals firm

Logo of Knowledge Economic City (KEC)

Knowledge Economic City (KEC) signed today, Nov. 4, a joint venture (JV) agreement with Maison Privee Holiday Homes Rental L.L.C. to establish a new company specializing in short-term residential rentals.

The new company will offer premium short-stay hospitality and management services for residential properties within KEC and Madinah, targeting visitors, pilgrims, and business travelers, it added in a statement to Tadawul.

KEC also noted that the duration of the JV will be determined in the articles of association of the new company upon establishment. There are no related parties involved in the deal.

According to the company, the JV agreement governs the relationship between KEC and Maison Privee as partners in the new JV.

Yup The primary objective of the JV company is to develop and operate a short-term rental management platform in Madinah, leasing furnished residential units to third-party guests and providing a full suite of hospitality and guest experience services, including housekeeping, concierge, catering, wellness, transportation, travel coordination, and event support. The company may also engage in other related activities within Madinah as mutually agreed by the JV partners.

The financial impact on KEC will be reflected in its share of profits from operating revenues generated through short-term holiday home rentals. The exact value and timing of this impact will be determined following the company’s incorporation and commencement of operations.

Through this partnership, KEC aims to introduce an innovative residential model in Madinah that combines holiday home rentals and flexible ownership options. The collaboration leverages Maison Privee’s expertise in branded short-stay management to enhance asset value for property owners and investors, while offering residents dual-use flexibility — for both personal living and rental income.

The new JV will provide property investors with a secure, flexible, and technology-driven solution to maximize their returns by tapping into the rising demand for short and long-stay accommodations in Madinah. The model allows investors to seamlessly switch between short-term rentals and long-term leases based on market conditions, ensuring higher yields and full control over their assets.

KEC has identified its flagship Al-Alya project with its residential offering of 1,420 apartments and 70 mansions as the first development to benefit from this JV, which is expected to drive apartment sales, while maximizing returns on investment for buyers through integrated short-term rental management. The JV ownership will be split between KEC and Maison Privee Holiday Homes Rental LLC as 70/30% ownership.

According to the statement, Maison Privee was founded in Dubai in 2017 as a luxury short-term rental operator and a recognized leader in premium hospitality management. It then partnered with Archipelago International, a leading international hotel management group, to integrate and benefit from its strong operations, advanced technology, and global distribution capabilities. It operates as a debt-free, profitable enterprise, having generated over AED 389 million in bookings, managing AED 1.83 billion in assets, and hosting over one million guests across Dubai and Abu Dhabi, achieving 150% portfolio growth since 2020. Maison Privee has received numerous international accolades, including 12 consecutive Airbnb Superhost awards, as well as honors from the World Travel Awards, LUXlife Magazine, and the International Travel Awards.