Global hotelier Carlson Rezidor and Saudi-based hospitality group Al Hokair have signed a long-term agreement to develop new hotels across the Kingdom.
As per the deal, the companies plan to establish new Radisson Blu and Park Inn by Radisson hotels in markets such as Riyadh, Jeddah, Makkah and Medina.
The group is also planning to expand to destinations in Saudi’s Eastern province such as Al Khobar, Damam and Jubail along with other secondary cities, which have been the recipient of government investment. These cities include Jizan, Hail, Tabuk, Al Baha, Al Khafji and Najran, a statement said.
“The Kingdom offers massive opportunity for the development of hotels, domestic resorts and serviced apartments; and we are delighted to partner with Al Hokair Group that has an unparalleled presence, market reach and hospitality expertise in the region”, said Wolfgang M. Neumann, president & CEO of The Rezidor Hotel Group.
Rezidor’s vice president Elie Younes said that the business venture will create shareholder value to both the companies.
“Currently, many secondary cities in Saudi Arabia lack quality accommodation for business and leisure travellers alike,” he said.
“So besides strengthening our position in primary markets, we also want to pioneer in secondary markets.”
Post the deal, Carlson Rezidor will operate around 30 new and existing hotels, resorts and serviced apartments under its upscale brand Radisson Blu and its midscale property Park Inn by Radisson.
Currently, the group operates seven hotels in the Kingdom with an additional 15 hotels to open within the next 30 months, the company said.
Carlson Rezidor has been on an aggressive expansion drive in the Kingdom as it looks to tap into the rising number of business and domestic tourists flocking to the country.
The hotelier recently announced plans to develop five new projects in Saudi Arabia including three hotels in Jeddah and one each in Riyadh and Dammam.
The projects that are in the pipeline to be developed in Saudi Arabia include the Radisson Blu Hotel & Residence, Jeddah Corniche, the Radisson Blu Red Sea Palace Hotel, the Radisson Blu Plaza Residence, Jeddah Salihiyah, the Park Inn by Radisson Hotel Riyadh Nasiriyah, and the Park Inn by Radisson Dammam.