BAAN Holding signs SAR 22.5M property lease extension in Hail

Logo of BAAN Holding Group Co.

BAAN Holding Group Co. signed an agreement today, Feb. 26, with Multipurpose Cooperative Society to extend the lease from May 1, 2028, to April 30, 2048, in Hail, for a total value of SAR 22.46 million (excluding VAT).

In a statement to Tadawul, the company said the lease pertains to the association-owned building, which houses the Golden Tulip Hotel in Hail. The current lease, which began on May 1, 2008, is set to expire on May 1, 2028.

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The company clarified that the lease extension aims to support the continued operation of the Golden Tulip Hotel, boosting investment returns and supporting tourism in the region.

The decision to extend the lease aligns with BAAN Holding’s goal of securing stable income, raising revenues, and ensuring long-term financial stability.

Additionally, the company said that the contract extension will improve cash flow, generate investment returns to support expansion, and enhance overall financial performance, particularly amid the significant development of Hail’s tourism ecosystem.

The lease term is 20 years, with the financial impact expected to appear in Q2 2025 results.

There are no related parties to the contract, the statement added.