Al Tayyar to acquire Movenpick City Star Jeddah for SAR 260 mln

Al-Tayyar Travel Group’s board of directors on Thursday approved the acquisition of Movenpick City Star Hotel in Jeddah for SAR 260 million.

The five-star hotel is located near the King Abdul Aziz Airport and consists of 228 rooms and suites, the company said in a filing to the Saudi bourse, Tadawul.

Al Tayyar will finance the deal from its internal resources in installments: SAR 60 million on transfer of ownership, SAR 100 million one year later and the remaining SAR 100 million to be paid after two years from the ownership transfer.

The hotel is expected to begin operations within three months and the financial impact of this deal is expected to be reflected on the company’s financials starting from the second quarter of 2016, the company added.

The deal is subject to the general assembly’s approval as the hotel is indirectly owned by a board member of Al Tayyar, Nasser bin Aqeel Al Tayyar.

The travel group said this acquisition is in line with its strategy to diversify sources of income and expand its hotel business.

Al Tayyar has lately acquired Equinox Group, a hotel asset management group, and Al Mosafer Travel Co., which operates in the field of hotel bookings and tourist programs via electronic platforms, in addition to acquiring some hotels in Mecca, according to data compiled by Argaam.