Makkah Construction and Development Co. (MCDC) terminated on June 13, 2019 its agreement with Millennium & Copthorne Middle East Holdings Limited to operate and manage the firm’s five-star hotel towers in Makkah, it said in a bourse statement today.
The decision, effective immediately, came after the hotel operator claimed ‘force majeure’ for failing to implement core terms of the contract, it said.
Makkah Construction has notified the hotel operator about the contract cancellation.
Work at the hotel towers is running as usual, as Makkah Construction is currently operating the project itself, it said, asserting that the agreement cancellation will not have any negative impact on its financial results.
Meanwhile, the company is seeking a new hotel operator, capable of realizing its objectives and aspirations, it added.
According to data compiled by Argaam, Makkah Construction signed in July 2017 a 20-year agreement with Millennium & Copthorne to operate five-star hotel towers in Makkah.
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