23rd Apr 2015 08:53
LONDON (Alliance News) - Action Hotels PLC Thursday said it will open a new three-star hotel in Saudi Arabia as it extends its portfolio in the region.
Action Hotels, which owns and develops three and four-star hotels in the Middle East and Australia, said it signed a 20-year operating lease agreement to covert an office building located on Olaya Street in Riyadh into a 130-bed hotel.
The company expects the project to complete in 12 months at a cost of around USD8 million, which will be funded by existing cash and debt facilities, and is expected to open in the second quarter of 2016, bringing Action Hotels' development pipeline to a total of nine hotels.
It said the new hotel will be operated by an internationally branded hotel group, adding that it is finalising the terms of a long-term management agreement which will be announced "in due course".
"We are proud to announce this primely located addition to the Action Hotels portfolio. Saudi Arabia is an attractive market for us, being the largest country in the region and having recently undertaken a widespread, long-term strategy for non-oil economic diversification driving business travel," Chairman Sheikh Mubarak Al Sabah said in a statement.
Shares in Action Hotels were trading down 4.1% at 55.15 pence Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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