Diriyah Awards Two Contracts Worth SAR 2.729 Billion to Build 5 Hotels and 3 Residential Assets

Diriyah Company awards two construction contracts with a total value of SAR 2.729 billion, or about $727.9 million, to build five luxury hotels and three residential assets in "Diriyah Square", according to the "Zawya" platform. The new development covers 413 luxury hotel rooms and 34 branded residential units.

A consortium comprising "MAN" and "MAG" won a $353.1 million contract to execute three hotels and two residential assets, while "Urbacon Saudi Arabia" won a $374.8 million contract to execute three hotels and one residential asset.

The scope of work includes facade construction, blockwork, finishes, mechanical, electrical, plumbing (MEP) systems, and external works. This award comes after previous contracts awarded to the two companies, including a $2.1 billion consortium involving "Urbacon Saudi Arabia" for four additional hospitality assets and the Royal Diriyah Equestrian and Polo Club in Wadi Safar, and a $244 million contract for the "MAN" and "MAG" consortium to build the Grand Mosque in Phase 2 of Diriyah.

The project represents a part of "Diriyah", one of the giga urban development projects in Saudi Arabia, which includes around 34 luxury hotel brands between the Diriyah masterplan and the adjacent Wadi Safar masterplan, within an urban project valued at about $63.2 billion aiming to attract 50 million visits annually.

What do these terms mean?

Residential Assets: Residential units built and managed under a hotel brand, where the operator manages the building and leases it to residents. Contract Awarding: Officially assigning the project execution to a construction company after bidding competition. Consortium: An agreement between two or more companies to execute a joint project and share profits and risks.