SHUAA Capital Saudi Arabia has signed on behalf of the Shuaa Saudi Hospitality Fund I, an agreement with leading Saudi business group Abdulla Fouad Holding Company, to develop a Rayhaan by Rotana hotel in Dammam, Saudi Arabia.

The hotel will be built at an estimated cost of SR260 million ($69.3 million) and will feature 240 rooms, most of which will offer an unobstructed sea view.

The new property will be situated in Dammam’s prime corniche strip on the Al Asheraa Roundabout, providing easy access to the Eastern Province’s main arterial roads to Jubail, Al Khobar and Dhahran as well as to King Fahad International Airport highway.

This transaction marks the third hospitality project announced by the fund in Saudi Arabia. The fund is already developing two other hotels in Jeddah, which will also be managed by Rotana, including a five-star Rayhaan hotel on the corniche and a four-star budget hotel on Madinah Road.

Shuaa Capital Saudi Arabia chief executive officer Omar Al Jaroudi said: “This agreement represents another important milestone for the fund and brings it closer to achieving its goal of developing eight hotel properties in the kingdom. Over the coming months, it will unveil additional projects in the pipeline. It is proud to have partnered with Abdulla Fouad Holding Company and would also like to extend its appreciation to the fund’s strategic partner Rotana, for its support.”

Rotana president and chief executive officer Selim El Zyr commented: “Rotana’s market expansion into the kingdom is progressing as planned and it would like to thank the Shuaa team for their professional approach to implementing the property development strategies.

“This project will allow Rotana to better serve business and leisure travellers as well as the community of the kingdom’s Eastern Province.”