Al-Tayyar Travel Group Holding Company’s Board of Directors endorsed the acquisition of Movenpick Hotel City Star, which is a new 5 stars hotel located on Al-Madinah Al-Munawwarah Road nearby King Abdulaziz International Airport in the city of Jeddah for SR 260 million.
Riyadh 4 January, 2016:
Al-Tayyar Travel Group Holding Company’s Board of Directors endorsed the acquisition of Movenpick Hotel City Star, which is a new 5 stars hotel located on Al-Madinah Al-Munawwarah Road nearby King Abdulaziz International Airport in the city of Jeddah for SR 260 million.
Al-Tayyar Travel Group Holding Company’s Managing Director & CEO Abdullah Bin Nasser Al Dawood said: this deal comes to strengthen Al-Tayyar Travel’s strategy to diversify income resources, and expand in hospitality sector. The group had acquired a number of hotels in Makkah Al-Mukarramah region, Equinox Group Limited specialized in asset management in the hospitality industry, and Al mosafer Travel Agency specialized in hotel bookings via platforms and electronic applications.
Abdullah Bin Nasser Al Dawood indicated that the deal will be funded by the company’s own resources, and payments will be made on installments: the first is SR 60 million upon the transfer of the property, the second is SR 100 million after 12 months have elapsed from the date of the transfer of the property, and the third installment is SR 100 million after 24 months have elapsed from the date of the transfer of the property. The acquisition is to be submitted at the next General Assembly for approval, since the hotel is indirectly owned by the board member Dr. Nasser Bin Aqeel Al-Tayyar (non-executive member).
Al Dawood explained that the hotel consists of 228 rooms and suites, 8 large meeting rooms, large ball room for over than 400 guests, and 2 restaurants with the capacity of over 180 persons, in addition to a handful of facilities like the spa, shops and others. He also pointed out that the hotel will be operating within 3 months, and that the financial impact of the deal will be seen in the second quarter of the year 2016.
