Seera Group Holding, Saudi Arabia announced the signing of an investment and joint venture agreement with AlUla Development Company, to establish a joint venture to develop and operate a Hotel in Alula.
As per the agreement, the JV will develop and operate a 215-room Clarion Hotel under the CHOICE brand on a 9000 square meter plot of land in the Central Business District of AlUla.
The value of the project is 170 million SAR.
The partners will contribute 30% of the capital, and 70% of the project value will be financed in accordance with Shariaah, statement mentioned.
As per the agreement, a joint venture company with 51% ownership by Seera Group and 49% ownership by AlUla Development Company will be established. The joint venture company will also sign a lease agreement with AlUla Development Company to obtain the land on which the project will be built for a period of 50 years, and the hotel will be owned by the joint venture company during the lease period. It is expected that the hotel will start operating in the first quarter of 2024.
