SHUAA Capital Saudi Arabia cjsc, one of the Kingdom's leading financial services institutions, has completed the acquisition of a prime plot of land in Jeddah through its SHUAA Saudi Hospitality Fund I, the company said in a statement Monday. The land will be developed into a 254-room budget business hotel which will be managed by Rotana Hotel Management Corporation, the leading hotel management company in the in the Middle East and Africa. The hotel, which will be branded "Centro Hotels by Rotana", will have a total built-up area of approximately 12,000 sqm. The total cost of the project is estimated at SR160 million. Omar Al-Jaroudi, chief executive officer of SHUAA Capital Saudi Arabia, said: "This marks the second such transaction made by the Fund in Jeddah and underlines our view that the city is an exciting investment destination for SHUAA Capital. In Rotana Hotel Management, we have a partner who shares our commitment to generating strong investment returns for our clients as well as supporting the economic growth of the Kingdom." The SHUAA Saudi Hospitality Fund I is a Shariah-compliant closed-end real estate investment fund launched by SHUAA Capital Saudi Arabia in August 2008 under the laws and regulations of the Kingdom. The Fund is offered as a private placement and regulated by the Saudi Capital Market Authority (CMA), in accordance with the Real Estate Investment Funds regulations. It was established in partnership with Rotana Hotel Management Company. The Fund focuses on acquiring and developing prime land and real estate in areas with strong long-term growth prospects and supply-constrained market dynamics. It is managed by SHUAA Capital Saudi Arabia while the hotels in the Fund's portfolio are operated by Rotana Hotel Management Company. Selim El Zyr, president and chief executive officer of Rotana, said: "Over the past six months, the hotel market in Jeddah has performed exceptionally well, with an increase in the average room rate of over 9 percent. This growth compliments the long-term prospects of the Jeddah economy which are being driven by extensive infrastructure and large-scale development projects. We see Saudi Arabia as a particularly promising market for Rotana hotels with significant upside potential."
