Saudi Hotels starts trading as DUR Hospitality
Firm announces US $400 million in new investment to build up portfolio
Saudi Hotels and Resorts has changed its trading name to DUR Hospitality Company and revealed it will invest SAR 1.5 billion (US $400 million) in new projects.
The publicly-listed company, which has been trading on the Saudi stock market since 1976, has a strategic expansion programme in place, with new hotel and residential projects aimed at tripling the company’s revenues by 2023.
DUR Hospitality Company CEO Dr. Badr Al-Badr explained that the company will invest more than SAR 1.5 billion ($400 million) in developing three- and four-star hotels and luxury residential complexes, to achieve the planned portfolio of 20 hotels and six residential complexes within the next seven years.
The firm will relaunch the Makarim Hotels chain as a brand specialising in religious tourism in the cities of the Two Holy Mosques (Makkah and Al-Madina), as well as other cities.
In addition, the company will enter into new partnerships with international franchises that specialise in hotel management and operations.
Dr. Al-Badr explained that this expansion plan would be an important factor in achieving sustained growth in revenues from operating incomes, and subsequent increases in net profit, to protect shareholders’ rights and retain their trust.
He commented: "We aspire to increase public revenues of the company three-fold to reach more than SR 1.5 billion (US $400 million) per year by 2023.
“We have already begun to implement the company’s new transformation policy, developing the company’s work and performance in several areas, such as, an initiative on institutional development and the improvement of operational efficiency; and the application of a new organisational structure that unites joint-services for the two main business activities.
“The policy aims to promote effective management and governance of the company's business, in order to guarantee enhanced quality control and performance levels, as well as achieve targeted growth in revenues and profits."
Dr. Al-Badr commented that the company’s net profit by the end of 3rd quarter of 2014 had increased to SR 129.4 million ($34 million) (at a rate of SR 1.29 per share), representing an increase of 22% over the same period in 2013, net profit at the end of 2013 having amounted to SR 143 million ($38 million).
In 2008, the firm’s capital was raised from SR 500 million ($133 million) to SR 691 million ($184 million), marking a 38% increase.
This figure was raised to raised to SR 1 Billion ($270 million) 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, company assets increased from SR 820 million ($218 million) to SR 2.1 Billion ($560 million) in 2013, after the completion of new projects such as the Marriott Executive Apartments and the Diplomat Courtyard Marriott Hotel in Riyadh.
Dr. Al-Badr concluded by saying that the new positioning would include an enhanced commitment to corporate social responsibility, with the launch of several programmes and initiatives planned for the near future.