Saudi Real Estate, U.S. Starwood Agree on Riyadh Project

June 5, 2016, 2:24 PM UTC

Saudi Real Estate has agreed with U.S. firm Starwood Hotels and Resorts to build two hotels next to a district of Riyadh which the government plans to develop into an international business zone.

Starwood (HOT) will manage a five-star hotel under its Westin brand and a four-star hotel under its Element brand, according to Saudi Real Estate, which owns the land. They spoke of the agreement on Sunday without giving details of construction plans.

Why Is Anbang Paying So Much For Starwood?

The project will be adjacent to the multibillion-dollar King Abdullah Financial District, the company said. The district was launched in 2006 to house banks and the financial regulator but has struggled to attract tenants.

The government said in April that it would rescue the financial district by transforming it into a special business zone with competitive regulations, visa exemptions for foreigners working there, and direct connections to Riyadh’s international airport.