Munshaat Real Estate Projects Company announced that its Board of Directors, during its meeting held on Monday, October 27, 2025, approved the renewal and signing of the hotel management agreement with Accor Hotels Group for the operation of Zamzam Pullman Madinah Hotel in the Kingdom of Saudi Arabia, maintaining the same renowned brand name.
The renewal followed a competitive selection process among several leading five-star international hotel operators, conducted in collaboration with Jones Lang LaSalle (JLL), one of the world’s leading real estate and hospitality advisory firms.
Following a comprehensive evaluation, Accor was selected to continue managing the hotel after submitting the most competitive offer in terms of operational efficiency and financial value.
The amended agreement introduces enhanced contractual terms that strengthen the alignment of interests between both parties and incentivize the operator to improve operational performance and maximize investment returns. The agreement also includes a financial contribution (Key Money) from the operator to support the hotel’s upgrade and enhancement.
Additionally, the agreement will be applied retroactively from the beginning of the current year, positively reflecting on the company’s financial performance in the current and upcoming years.
The renewed agreement is expected to increase the Group’s projected profits by approximately KWD 3.8 million, of which Munshaat’s share is around KWD 3 million. About KWD 2.4 million of this amount (KWD 1.9 million attributable to Munshaat) will be recognized over 2025 and 2026, with the remaining profits realized between 2027 and 2029.
These results are anticipated to enhance operational efficiency and profitability for the Group over the medium and long term.