Saudi Arabia's Dur Hospitality plans to open a three-star hotel in Yanbu with the recent signing of a 40-year land lease agreement for 7,600 sq m, said a report.

The agreement, which comes in line with the company’s vision of developing hotels across emerging cities in the country, was signed with the Royal Commission for Jubail and Yanbu, the Saudi Gazette reported.

Dur Hospitality revealed that the development will be self-financed along with banking facilitations and will take three years to construct post the completion of the architectural design.

Earlier this year, the group unveiled its plans to invest SR1.5 billion ($399.8 million) in a portfolio of 20 hotels and six residential complexes in the kingdom over the next seven years.

The group is further planning to expand into emerging cities in Saudi Arabia such as Jubail, Yunbu and Tabuk, announcing its first Holiday Inn in Tabuk - the first hotel to be developed under the master development agreement (MDA) inked between InterContinental Hotel Group (IHG) and Dur Hospitality last year.