Dur, stc in deal to set up innovative AI hotel in Riyadh
RIYADH, October 19, 2022
Saudi-based Dur Hospitality said it has signed a nonbinding MoU with Smart Zone Real Estate Company, a unit of Saudi Telecom Company (stc) for the development of an innovative hotel within the stc Square project in Riyadh,
A first-of-its-kind project in the kingdom, the hotel will offer state-of-the-art hospitality services, conforming to the highest international standards, and adopt cutting-edge Artificial Intelligence technologies. The project will be developed by stc’s real estate development arm Aqalat.
As per the MoU, Dur will conduct the necessary studies to set up a limited liability company through a joint venture with Smart Zone Real Estate Company - where in 80% to 90% of the shares will be owned by Dur Hospitality and 10% to 20% owned by Smart Zone Real Estate Company.
Once launched, the project will lease a 3,343 sq m land within stc Square Project from Smart Zone Real Estate Company to develop and operate the hotel.
Dur said upon the completion of the studies, the JV’s capital and the project development costs will be decided, and the agreement will be signed.
"Dur thrives on constructing and developing a hotel embracing the latest technologies. This serves Dur’s strategic expansion roadmap and enhances its market-leading position in the kingdom’s hospitality sector," remarked its CEO Sultan Al Otaibi.
"Committed to delivering an unforgettable hospitality experience, Dur aims to keep pace with the growth in tourism and hospitality industries and drive efficiencies through digital transformation by promoting ultra-modern hotel products and redefining services to clients of all segments," he stated.
Al Otaibi considered the project a quantum leap in the hospitality sector in the Kingdom and the region that will bring top AI and automation experiences, providing guests with a distinctive stay while diversifying revenue streams and strengthening the tourism sector, a core pillar of Saudi Vision 2030.
On the new AI hotel project, Aqalat CEO Feras Albanyan said: "We are happy to partner with Dur, which is recognized for its extensive record in developing and operating a broad portfolio of hotels across Saudi Arabia, on this innovative project."
Albanyan said it was a crucial element of the stc Square Project which will be the first innovative mixed-use project, offering smart solutions and products to the business, retail, and entertainment sectors.
"It is one of the smart solutions planned by stc subsidiaries that highlight the Saudi telecom’s strenuous efforts to deliver the best smart urban services and solutions," he added.-TradeArabia News Service
