Knowledge Economic City (Tadawul: 4310) has signed a joint
venture agreement with Archipelago International Indonesia to
establish a company specialising in hotel management and operation,
according to a filing on December 2.
The agreement, signed on December 1, establishes KEC and
Archipelago as equal partners in the new venture. The joint
venture's primary objective is to manage and operate hotels within
Knowledge Economic City, with potential expansion to other hotel
management activities across Saudi Arabia as mutually agreed by the
partners.
Through the partnership, Knowledge Economic City aims to build
self-reliance in hospitality facilities management and develop a
new brand to ensure quality and sustainability for its large
hospitality portfolio.
Archipelago International Indonesia is Southeast Asia's largest
privately owned hotel management group, founded in 1997. The
company operates more than 45,000 rooms and residences across over
200 locations in Southeast Asia, Latin America, the Caribbean, the
Middle East and Oceania.
The Indonesian group's portfolio includes award-winning brands
such as Aston, The Royal Alana, Huxley, Kamuela, Avanika and
Harper. Archipelago has been expanding into new markets including
Australia, the Middle East and South America.
The duration of the joint venture will be determined in the
articles of association of the new company upon establishment. The
deal involves no related parties, according to the filing.
The financial impact on KEC will be reflected in its share of
profits from operating revenues generated through hotel management.
The exact value and timing will be determined following the
company's incorporation and commencement of operations.
Knowledge Economic City is a mixed-use development in Madinah
comprising residential, commercial, educational and hospitality
components. The city has been developing its tourism infrastructure
as Saudi Arabia pursues ambitious targets to attract visitors under
Vision 2030.
KEC's shares rose 0.34% on the day of the announcement.
© 2025 bne IntelliNews, source Magazine
