Increased rents reduce Jabal Omar's losses
Increased income from rents and lower spend improves prospects
Jabal Omar Development, the company developing a series of hotel tower projects close to Makkah's Grand Mosque in Saudi Arabia, announced a 64% reduction in losses during the nine months to September 2.
The company said that its net losses dropped by 65% to $3.9m (SR14.7m), compared to a loss of $11.1m (SR41.8m) experienced during the same period last year.
It attributed the fall to new rents achieved in section 1 of the project as the initial towers opened, while the amount of money it spent on sales and marketing of the project also fell.
The company awarded a $400m deal to build ten hotel towers to Al Khobar-based contractor Nesma & Partners in July last year under a three-year deal set to complete in 2015. The overall project is expected to cost $5.3bn and involves the construction of 38 hotels containing 13,500 rooms.
In May, Jabal Omar said it had signed a 20-year deal with Starwood Group for three of the hotel towers under development/. The three towers will be run as a Sheraton, Westin and a Four Points by Sheraton hotel.