As part of its strategy to expand in the hospitality and hotel sector, Al-Tayyar Travel Group Holding announced its acquisition of Mathamara Real Estate Investment and Development Company, which owns numerous real estate and hotel projects in Makkah. The group also acquiredthe Sheraton Makkah Hotel, which is located directly on the courtyard of the Grand Mosque and features 422 rooms and hotel apartments. Additionally, the Group’s subsidiary, Iconix, signed an operating agreement with Choice Hotels International, Inc. for its leading brands.

Last Sunday, Al-Tayyar Group signed a memorandum of understanding with Investment Securities and Brokerage Company (Investment Capital) to establish a publicly traded real estate investment trust “REIT” specializing in the hotel and hospitality sector in the Makkah and Madinah regions, where Investment Capital intends to launch a publicly traded real estate investment trust in the Saudi market, following approval from the Saudi Capital Market Authority, specializing in hospitality properties and accommodations for pilgrims and Umrah performers in both Makkah and Madinah. Accordingly, the memorandum of understanding was signed with the group, which owns several properties in the same target category in Makkah, with the aim of having the fund acquire them and list them on the Saudi market during the initial public offering period.

The fund aims to acquire four real estate assets owned by the Group in the Makkah region, namely the hotel apartments at the Sheraton Hotel, the Bir Bilila Hotel building, the Shu’bah Quraish Hotel building, and the Ajyad Al-Masafi Hotel building. The Group intends to retain a majority stake in the proposed fund.