Dur Hospitality, RCJY finalize details for 3-star hotel project

Dur Hospitality said in a bourse statement that it has ironed out all details related to its agreement with the Royal Commission for Jubail and Yanbu (RCJY), which will see the construction of a three-star hotel.

Under the terms, RCJY will allocate a land plot in Yanbu where the hotel will be built. The land will be leased for 40 years from the date of signing, at an annual cost of SAR 66 per square meter, or SAR 505,000 in total.

Construction is expected to be completed within 36 months, while the financial impact will be reflected in the third quarter of 2018. The project will be financed from Dur’s resources, in addition to some bank credit facilities.

The hotel’s total cost will be determined after designs are finalized and the execution process begins.

Dur added that the new development falls in line with its strategy to meet growing demand for hotels in Jubail and Yanbu.