Firm advises on $5.5bn Saudi hotels project
Manama, May 25, 2011
Baker & McKenzie has advised Jabal Omar Development Company on a $5.5 billion hotel transaction in Makkah, Saudi Arabia, one of the largest hotel deals in the region.
Baker & McKenzie acted as owner's counsel in negotiations with Hilton, Hyatt and Marriott for the management and operation of 12 internationally branded hotels, the first of a series of international operators and brands to be offered at the Jabal Omar site.
Hilton will manage six hotels, while Hyatt and Marriott will each manage three. Most of the hotel brands signed are in the 5-star and 4-star category.
Jabal Omar Development Company anticipates entering into management agreements with six other international chains for the management and operation of around 14 other internationally branded hotels at the Jabal Omar site throughout the remainder of 2011, with Baker & McKenzie appointed as its legal counsel to as owner's counsel in all hotel negotitations.
The $5.5 billion mixed-use, hotels led project will also provide accommodation, once complete, for 45,000 pilgrims and is one of the biggest projects of its kind in the world, in terms of number of hotel units, number of management agreements and value of investment.
“Jabal Omar Developmnet company is an important client of Baker & McKenzie in the kingdom and we are privileged to have been involved in such a landmark transaction. A project of such scale puts our Gulf Hospitality practice on the map and we look forward to assisting Jabal Omar on its future projects,' stated Ian Siddell, partner and head of the Gulf Banking & Finance practice, Baker & McKenzie.
Baker & McKenzie recently opened its fifth Mena office in Doha.-TradeArabia News Service