Enma Alrawabi inks 6-year lease agreement for Makkah hotel

Logo of Enma Alrawabi Co.

Enma Alrawabi Co. signed an agreement with Al-Andalus Co. for Maintenance, Management, and Operation of Hotels and Residential Palaces to lease the Rawabi Zamzam Hotel in Makkah for six years at an annual rate of SAR 13.8 million (VAT included).

The property is leased with all its contents, in line with the terms, conditions, and stipulations agreed upon by both parties for use as a hotel, the company said in a statement to Tadawul.

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It added that the purpose of the transaction is to optimize the property's utilization under this agreement by increasing revenues and enhancing the performance efficiency of its real estate portfolio.

According to the company, the expected impact of the transaction is enhanced utilization of the property, which will positively impact the asset's real estate revenues under this agreement.

The property has been leased for a 50% increase compared to the previous contract. This contract will have a positive financial impact that will be reflected in the company's revenues and results starting from Q4 2024 up to Q2 2030.