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Knowledge Economic City Announces the Signing of Agreements with Hilton Worldwide Manage Limited for the Branding, Marketing License and Services for The Residential Tower of the First Phase of Al-Multaka Project
| Element List | Explanation |
|---|---|
| Introduction | With reference to the Knowledge City Forum project, which aims to develop an urban hub and a new destination in Medina that provides and combines leisure, entertainment, hospitality, shopping, and residential services within its basic components, which includes a main market linked to two towers (hotel and hotel apartments), an events area, closed entertainment halls, a cinema and a health club in addition to a boulevard area. Commercial overlooking a garden and green areas. The Company announces the signing of an agreement on 15 February 2024 with the Hilton Worldwide Mange Limited through which the Hilton will grant a license to the Company to sell the branded residence tower apartments under the brand and provide Hotel certain services to the apartment owners through the Hilton Hotel adjacent to the branded residence tower. |
| Date of Announcement of the Award | 2024-02-15 Corresponding to 1445-08-05 |
| Contract Subject Matter | Provide the branded residence tower with branding and marketing license and the delivery of Hilton Hotel services through granting access to Hilton Hotel facilities. |
| The Entity with Which the Contract was Signed | Hilton Worldwide Manage Limited |
| Date of Signing the Contract | 2024-02-15 Corresponding to 1445-08-05 |
| Contract Value | A fixed initial fee and a percentage of sales as license fees with annual services fee on the residential unit owners. |
| Contract Details | To brand the residential tower under the Hilton name and trademarks as a branded residence project and service it with those services commensurate with other branded residence projects serviced by Hilton and allow access to residents of the residential tower to the facilities of the Hotel in addition to providing marketing and licensing services for the residential tower. |
| Contract Duration | The contract duration is aligned with the terms of the hotel management documentation for the adjacent Hilton hotel, which has been agreed upon earlier for an initial period renewable for more terms. |
| Financial Impact and the Relevant Period | The branding and marketing licensing for the branded residence tower by Hilton enhances the total value of the residential tower. The periods on which the financial impact will be reflected go along with the time and periods of sale of residential units. |
| Related Parties | No related party. |
| Additional Information | The Knowledge Economic City Hub Project “Al-Multaka” aims to be an additional social and economic destination for Medina with its multi-use components. The project’s mall is connected to the Hilton Hotel, which provides 354 rooms “5 stars” in addition to a big banquet and conference hall. The Hilton Hotel is also connected to the residential tower. Through the signed agreements, the residential tower will be branded under the Hilton name and trademarks as a branded residence project and service the residential tower with those services commensurate with other branded residence projects serviced by Hilton through granting access to residents of the residential tower to the facilities of the Hotel. The residential tower includes (64) luxury apartments of areas that reach up to (530) square meters and a penthouse with an area of (760) square meters. The work on the tower skeleton is in its final stages and the project completion date will be determined upon signing the electromechanical and finishing works contracts. |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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