DUR Hospitality Company to invest SR1.5bn in expansion

Chairman Abdullah bin Mohammed Al-Issa with CEO Badr Al-Badr.

Chairman Abdullah bin Mohammed Al-Issa with CEO Badr Al-Badr.

Saudi Hotels and Resorts Company, a public company listed in the Saudi stock market since 1976, has announced the launch of its new identity.

It is also changing its trading name to “DUR Hospitality Company”, with a strategic transformation and expansion program involving significant investments.

The new identity was launched at a special ceremony, attended by a host of government, economic and financial figures, investors and media representatives.

During the ceremony, the company was broadcast a speech by Prince Sultan bin Salman, president of the Saudi Commission for Tourism and Antiquities, who congratulated the company on the new trading name. He praised the company’s achievements in the hospitality sector across several decades.

Prince Sultan also wished the company success in its strategic plan to expand investments in order to accomplish even more, and contribute to the development of the hospitality sector and help enhance the services sector in Saudi Arabia.

The official announcement was made in Riyadh by Chairman Abdullah bin Mohammed Al-Issa and CEO Badr Al-Badr after an extraordinary general assembly of company shareholders approved the new corporate identity.

Abdullah bin Mohammed Al-Issa explained the rationale behind the strategic transformation program and new identity. He said: “The company plans further expansion of investment in the development of hotels and luxury residential complexes, and looks forward to seeing the company’s revenues triple by 2023.”

Al-Issa said the business expansion plan, in addition to improving company performance, had created the need for a new corporate identity to match the expansionist vision, as well as help maintain the modernity and continued success of operations in the hospitality sector.

Al-Issa also outlined the company’s most important milestones during its 38-year history, as well as its successful investments — implemented in a phased manner — which have led to positive results in its investment portfolio and a significant rise in its capital on two occasions in the past five years.

In 2008, the capital was raised from SR500 million to SR691 million (a 38 percent increase).

It was then raised to SR1 billion in 2012, funded by a surplus in the balance of property rights, which was used to promote expansion of the company’s business.

At the same time, the company’s assets increased from SR820 million to SR2.1 Billion in 2013, after the completion of new projects such as the Marriott Executive Apartments and the Diplomat Courtyard Marriott Hotel, which are regarded as being among the most attractive hospitality landmarks in Riyadh.

CEO Badr Al-Badr said that the key elements of the strategic transformation program will build on the company’s achievements and continuing progress.

Al-Badr told journalists that the company’s net profit by the end of third quarter of 2014 had risen to SR129.4 million (at a rate of SR1.29 per share), representing an increase of 22 percent over the same period in 2013 (net profit at the end of 2013 having amounted to SR143 million).

The CEO gave details of the expansion plan, which is part of the transformation program for DUR Hospitality, saying that it would be based on two main business activities: hotel and real estate development, and hotel operations.

Under the first business activity, DUR will invest more than SR1.5 billion in developing 3- and 4-star hotels and luxury residential complexes, to achieve the planned objective of capitalizing the company’s portfolio by reaching 20 hotels and 6 residential complexes within the next seven years. Meanwhile, the hotel operations business would re-launch the Makarim Hotels chain as a brand specializing in religious tourism in the cities of the Two Holy Mosques (Makkah and Al-Madina), as well as other cities.

 
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