Riyadh-Mubasher: Saudi Airlines Catering signed a lease contract with Saudi Airlines Real Estate Development Company (SARED) on 3 April, according to a bourse statement.
The contract aims for investment in the Saudia Hotel and its premises, including its entertainment center, which is located in the southeast of Saudi Airlines compound in Alkhaldiyah district.
SACC shall renovate, furnish and run the Saudia Hotel and its entertainment center.
The lease rate amounts to SAR 2.4 million with an annual increment of not more than 5%, effective from the contract's 5th year.
The company will use its operating cash flow to finance the project, with a positive expectation for its revenue starting from the fourth quarter of 2016.
The authentication of the contract will be approved at the upcoming ordinary general meeting.
