Saudi-based Dur Hospitality acquires Shada Homes Company
The acquisition of Shada came at a time when the company was looking to develop a new brand.
Earlier this year, Dur Hospitality signed an agreement to purchase a majority stake in Shada Homes Company.
Under the agreement, Dur Hospitality owned 60% of Shada Homes, and thereby transformed the legal entity of Shada from a closed joint stock company to a limited liability company.
The acquisitions was made to strengthen the company’s presence in the hotel apartment sector.
Speaking with Hotel Design and Build, Hasan Ahdab, president of hotel operations, Dur Hospitality, said that initial plans were to potentially develop a bew brand under Dur.
“We were internally eying the service apartment market and were in the process of developing a brand for it. However when we came across Shada and met the owners, we found that this is the right vehicle for us to increase our presence, so we went ahead and acquired the brand.
“We are really expanding and spending wherever the opportunity lies. The market segment for hotel apartments in Saudi Arabia is something I would call the national market. Domestic travellers need them when traveling from one city to the other and our job is to expand and meet these demands," Ahdab said.
“I would not say that we have abandoned the idea of a new brand, but with the acquisition of Shada, we have decided not to pursue our previous work under serviced apartments.”