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Tourism Enterprise Co. (Shams) has officially signed a lease and operation agreement for its first hotel project in Riyadh with Al Malqa Elite Hotel. The deal carries a total value of SAR 31.1 million, including value-added tax, and spans a duration of 10 years. Under the agreement, Shams will operate a 17-story hotel in the northern As Sahafah district, with annual rental payments starting at SAR 2.8 million for the first two years and rising incrementally to SAR 3.3 million in later years.
The strategic expansion marks Shams' first operational venture outside of the Eastern Province as part of its ongoing business transformation strategy. The lease period is scheduled to officially commence on January 1, 2027, following a grace period starting October 2026, although operational handovers begin immediately. The financial impact of the contract will start reflecting in the company's financial statements starting in the first quarter of 2027.
This project reflects broader growth trends in the Saudi hospitality and tourism sector, driven by Vision 2030 infrastructure initiatives. Investors will be keeping a close watch on how this expansion impacts Shams' operational revenue and whether future performance disclosures justify the company's long-term transformation goals in the Kingdom's booming capital market.
