Banan wins contract to develop Riyadh hotel project

Banan Real Estate Company has signed a SAR55 million ($14.5 million) contract with Saudi-based Afaq Al Qimma Al Rabiaa Al Mutatawera Company for the development of a hotel building within Al Rahmaniya neighbourhood in capital Riyadh.

A key entity in Saudi Arabia, Afaq Al Qimma Al Rabiaa Al Mutatawera was established mainly to acquire and own prime real estate assets belonging to Artal Real Estate Development Fund IV (which is a closed real estate investment fund managed by Artal Financial Company).

The new hotel building, which will come up on a ​​3,284m plot in Al Rahmaniyah district, is owned by Artal Fourth Real Estate Fund. The entire work will be completed within a two-year period, said Banan Real Estate Company in its filing to Saudi bourse Tadawul.

As per the deal, Banan will also be responsible for marketing the hotel project. 

Banan’s key subsidiary Qimam Noshoz Real Estate Development Company owns a 38.2% stake in the fourth Artal Real Estate Development Fund, while Banan directly owns 10.2% of the fund.

On the financial impact, the Saudi developer said the positive financial impact will be reflected in the company’s revenues and results starting from the second half of FY 2026.-TradeArabia News Service