Seera scraps Clarion hotel deal with AlUla Development

Seera Group Holding announced the termination of the contract signed with AlUla Development Co. due to higher costs of establishing the project than agreed and the infeasibility of investing in it, according to a Tadawul statement.

The total amount of the partner’s contribution to the project so far is SAR 14 million, of which SAR 4.68 million are incurred expenses to date. Each partner will return the remainder according to their respective shareholding percentages.

The partners decided to terminate all existing contracts with consultants, designers and developers and settle any existing financial claims, if any, the statement added.

Seera signed, in February 2022, a 50-year investment and joint venture agreement with AlUla Development Co. to establish a joint venture to develop and operate a 215-room Clarion Hotel under the CHOICE brand on a 9,000 square meters plot of land in the Central Business District of AlUla. The cost of the project was SAR 170 million.

Under the agreement, Seera was to own 51% of the joint venture, while the remaining 49% was held by AlUla Development.

Source:Argaam