SHUAA Capital Saudi Arabia (‘SHUAA’) announced that two of its principle hotel projects in Saudi Arabia, the Centro Shaheen by Rotana hotel in Jeddah and the Centro Waha by Rotana hotel in Riyadh, are nearing completion.
The handover process for the Centro Shaheen will commence later this month and the hotel is expected to be operational in the first quarter of 2016. The Centro Waha is scheduled to be handed over to the management company in the first quarter of 2016 and is expected to begin operations by the second quarter of 2016. A General Manager for the Centro Shaheen has been appointed and the core management teams for both hotels are in place. Recruitment for remaining staff positions has begun.
Earlier this year, SHUAA, in its capacity as fund manager, successfully arranged for Shariah-compliant debt financing of SAR 215.6 million for the two projects from the Saudi Fransi Bank.
Abdulrahman Al Hareb, Chairman of SHUAA Capital, said: “Saudi Arabia is an important market for SHUAA where we see growth opportunities, particularly in the hospitality sector, an area where we have developed a strong track record and expertise. The completion of the Centro Shaheen and Centro Waha projects is a key milestone for us as we look to explore similar opportunities in the Kingdom.”
The 248-room Centro Shaheen hotel is situated in the heart of Jeddah’s central district, in close proximity to the Ruwais area. It has convenient road access to all Jeddah landmarks and is less than 20 minutes from Jeddah’s King Abdulaziz International Airport. The 290-room Centro Waha hotel is located on Riyadh’s Olaya Road, which is in close proximity to the King Abdullah Financial District.
Kamel S Almunajjed, Chairman of SHUAA Capital Saudi Arabia, commented: “This is a significant achievement in what has been a long but successful journey. We are pleased to be launching the Centro Waha and Centro Shaheen hotels which will be welcome additions to the growing hospitality sector in the Kingdom. We see the completion of these projects as a key step in SHUAA’s strategy to focus further on the real estate and hospitality sectors.”
The third hotel project being developed by a SHUAA-sponsored hospitality fund, the Dana Rayhaan Dammam, is progressing well and delivery is scheduled for 2017. Upon completion, it will have 285 rooms and a built-up area of approximately 25,000 sq/m.