KEC, Archipelago sign deal to launch hotel-management firm

KEC signed a joint venture with Archipelago International to establish a new hotel-management company with financial impact to follow after operations begin

Knowledge Economic City (KEC) signed a joint venture (JV) agreement with Archipelago International Co. to establish a company specialized in managing and operating hotels, the developer said in a statement to Tadawul.

The partnership term will be set out in the new company’s Articles of Association.

The agreement governs the relationship between KEC and Archipelago as equal partners in the new JV.

The financial impact on KEC will be reflected in its share of operating revenues generated through hotel management, and the size and timing of the impact will be determined once the company is incorporated and begins operations.

Founded in 1997, Archipelago International Indonesia is Southeast Asia's largest privately owned hotel management group, with more than 45,000 rooms and residences in over 200 locations across Southeast Asia, Latin America, the Caribbean, the Middle East, and Oceania. It has a long track record and award-winning brands, including Aston, The Royal Alana, Huxley, Kamuela, Avanika, and Harper.

Archipelago is now moving into other markets across the globe, such as Australia, the Middle East, and South America.