Saudi Arabia’s Dur Hospitality Company has inked a final partnership agreement with Smart Zone Real Estate Company, wholly owned by Saudi Telecom Company (STC), to set up a special-purpose vehicle to build a hotel in Riyadh.

The new company, 84 percent owned by Dur and 16 percent by Smart Zone Real Estate, will have an initial capital 25,000 Saudi riyals ($6665.69), Dur said in a statement to the Saudi stock exchange.

The new firm will lease a 3,343 square metre land plot to build and operate an integrated hotel within the mixed-use STC Square project in the Saudi capital.

The project details or cost has not been disclosed yet.

Dur and Smart Zone Real Estate signed an agreement in October 2022.