Knowledge Economic City Company (KEC) has announced that one of its key subsidiaries, Al Gharaa International Real Estate Development Company, has entered into deals with global hospitality groups - Hilton, Marriott International, InterContinental Hotel Group and Radisson - as well as Indonesian group Archipelago to manage and operate a range of hotels within the first phase of its ambitious Islamic World District Project. 

 

These hotels will be add a total of 5,142 keys to the Islamic World District Project, said KEC in its filing to Saudi bourse Tadawul. 

 

Spanning over a 900,000 sq m area, the project will offer residential and hospitality services to enrich the religious and cultural experiences of visitors, along with Umrah and Hajj pilgrims, during their visit to Madinah.

 

It will be directly connected to the main mosque, the Haramain High Speed Railway and the Prince Mohammad bin Abdulaziz International Airport in Madinah.

 

Upon completion, the project will boast around 18,000 hotel rooms along with eco-friendly means of transportation.

 

In addition to this, it will be offering entertainment for families, with live events, theaters, exhibitions, and festivals.

 

These hotels will be developed through a real estate investment fund being established in the southern part of the City, it stated.

 

According to KEC, a total of 1,415 hotel rooms will be developed within the Phase One of its ambitious Islamic World District Project.

 

As per the deal with Hilton, the hospitality giant will manage and operate 732 keys under the Hilton Garden Inn brand, 400 under Hampton by Hilton brand and 283 suites under the Home2 Suites by Hilton brand for a 15-year period, which is extendable on mutual agreement for additional two terms, each for 5 years.

 

On the Marriott deal, the City said it will manage and operate three hotels with a total of 1,264 keys for a 20-year period, which is extendable on mutual agreement for additional two terms, each for 5 years.

 

Of this, 456 will be managed under the Courtyard by Marriott brand, 558 under the Four Points by Sheraton brand and 250  under the Residence Inn by Marriott brand 

 

On the InterContinental deal, the knowledge city said the hospitality major will manage and operate 3 hotels with a total of (1,057) hotel keys for a 15-year period, extendable on mutual agreement for additional term of 5 years.

 

Of this, 350 keys are under the Holiday Inn brand, 505 under Holiday Inn Express brand and 202 suites under the Holiday Inn Suites brand.

 

On the deal with Radisson Hospitality, KEC said it will manage and operate two hotels with a total of 757 hotel keys for a 15-year period, which is extendable on mutual agreement for additional two terms, each for 5 years.

 

Of this, 611 will be managed under the Park Inn by Radisson brand and 146 serviced apartments under the Park Inn by Radisson brand.

 

On the deal with the Indonesian group, KEC said Archipelago will manage and operate two hotels comprising 649 hotel keys for a 10-year period, extendable on mutual agreement for additional two terms, each for 5 years.

 

Of this, 519 hotel keys will be managed under the Aston Hotel brand and 130 hotel apartments under the Aston Residence brand.

 

All these properties will come up near the Haramain High-Speed Train Station surrounded by open green areas, including parks and pedestrian pathways. Additionally, these hotels will boast key amenities including meeting rooms, all day dining, café and a gym.

 

On the financial Impact, KEC said additional revenues and proceeds from hotels operations are expected in the Q4 2027.-TradeArabia News Service