TIME Hotels Management, has signed a joint venture agreement with Saudi-based Al Fahd Investments today (Monday 26 April) on the sidelines of Arabian Travel Market 2016, which is taking part at the Dubai World Trade Centre.
Under the terms of the agreement TIME will be given two properties to manage in Riyadh and the northern city of Al Qurrayat. TIME will also be tasked with providing consultancy services on behalf of the new hospitality entity.
“Al Fahd Hospitality has a budget of over $600 million, to fund its present and future pipeline of properties which currently consists of seven mainly mid-market hotels, which are all due to open within the next two years,” said Mohamed Awadalla, CEO, TIME Hotels.
Al Fahd has a very strong background in development, construction and contracting in Saudi Arabia, pioneering some 500 projects over the past 30 years and completing more than 300 properties during the past decade.
“Al Fahd Investments decided to form a joint venture with TIME Hotels because we were very impressed with the way they managed and grown their own branded hotels. They have exceptional regional experience and recognise the international standards we must achieve, for our hotels and apartments to succeed in the Saudi market,” said Ahmed Al Fahd, Vice Chairman of Al Fahd.
A key aspect of the new venture is that TIME will manage two new mid-market hotels, one in the Saudi capital Riyadh and one in the northern city of Al Qurrayat, a strategic gateway, situated 15 kilometres from the Jordanian border.
The 26-storey, three-star King Fahd Road project in Riyadh has 96 rooms and suites, an all-day restaurant, indoor/outdoor café, three meeting rooms and a health club. The hotel is expected to open in June 2017.
The hotel is close to the Ministry of Interior building, other government institutions and only a short drive to the commercial and shopping districts in the centre of Riyadh.
Depressed receipts from Saudi oil revenues has led some government departments and private companies to reduce their travel expenses, driving corporate demand for more mid-market hotels, a category traditionally neglected in favour of more luxury properties – a recent Tophotelprojects report estimated that out of the 49,000 hotel rooms under development in Saudi, many were in the mid-range category.
“Given the current stalemate between OPEC members over production quotas, and short term economic outlook, this trend is set to continue,” said Awadalla.
The second hotel TIME is opening in Saudi Arabia is in the northern city of Al Qurrayat, in Al Jawf Province, situated 15 kilometres from the Jordanian border, a major and historic market place. The four-star hotel, which is due to open later this year, consists of 137 rooms and suites, an all-day restaurant, Café, health club and two meeting rooms.
“More significantly, Al-Hadithah Port is the largest and one of the most important land ports in the Kingdom, located just 30 kilometres away from Al Qurayyat. That crossing provides a strategic link to the neighboring countries of Jordan, Syria, Lebanon and Turkey, as well as an entry point for pilgrims coming to perform Hajj and Umrah from Turkey, Russia and Chechnya,” said Awadalla.
For more information, log on to www.timehotels.ae