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Shovel-Ready · Municipal Approval Granted · JV Structure · International Brand
Corniche Waterfront · Shovel-Ready · JV Structure
The rarest asset in Jeddah’s hospitality market — a shovel-ready corniche waterfront site with 36-floor hotel approval already in place.
Cubotic LLC, acting as exclusive intermediary under a signed mandate from the landowner, presents a unique hotel development opportunity directly on the Jeddah Corniche Road. The site sits less than 100 metres from the Red Sea waterfront, with unobstructed panoramic views from ground level upwards.
The 5,400 m² plot holds a valid municipal approval for a 36-floor hotel building with frontage on a 40-metre arterial boulevard. The landowner seeks a Joint Venture with an international branded hotel operator. Land is contributed as equity — no cash acquisition required.
At SAR 511.5M investor CAPEX generating SAR 53.5M NOI, this delivers an 8.4% yield on cost on a corniche waterfront hotel in one of the GCC’s fastest-growing tourism markets. Stabilised asset value of SAR 764M represents a 1.5x multiple on invested capital.
Joint Venture. Landowner contributes site (valued by 3 Saudi-accredited companies). Investor contributes construction capital (~SAR 511.5M). International brand provides management. Fee protection agreement in place with Cubotic LLC as exclusive intermediary.
Site Data · Waterfront Location · JV Structure
Satellite verification confirms the site is directly adjacent to Corniche Road. The Red Sea is less than 100 metres from the plot boundary — classified as effective waterfront, not merely "sea view". This places the asset in the same tier as Al Shati and Al Hamra premium hotel sites.
Full P&L · Waterfront Hotel Economics · Real Market Data
| Concept | Basis | SAR |
|---|---|---|
| REVENUES | ||
| Room Revenue | 400 keys × SAR 1,000 ADR × 70% occ × 365 | 102.2M |
| F&B Revenue | Restaurants, banquets, in-room | 30.7M |
| Events & MICE | Conferencing, weddings, corporate | 12.2M |
| Other (spa, parking, retail) | — | 8.2M |
| Total Revenue | SAR 153.3M | |
| OPERATING COSTS | ||
| Rooms Department | 25% of room revenue | −25.6M |
| F&B Department | 70% of F&B revenue | −30.0M |
| Admin & General | 8% of total revenue | −12.3M |
| Sales & Marketing | 5% of total revenue | −7.7M |
| Maintenance & Utilities | 4% of total revenue | −6.1M |
| GOP (Gross Operating Profit) | 43% margin | SAR 71.6M |
| Brand Management Fee | 6% of total revenue | −9.2M |
| Brand Incentive Fee | 10% of GOP above threshold | −4.5M |
| FF&E Reserve | 3% of revenue | −4.6M |
| NET OPERATING INCOME (NOI) | Yield 8.4% on investor cost | SAR 53.5M |
| CAPEX & VALUATION | ||
| Land (JV equity contribution) | Owner contribution — below market | SAR 125M |
| Construction (hotel grade, industrialised) | SAR 5,500/m² × 65,000 m² | −357.5M |
| FF&E (hotel — 400 rooms) | SAR 175,000/room | −70M |
| Pre-opening + Brand fee | — | −25M |
| Engineering + Licensing | — | −22M |
| Contingency (8%) | — | −37M |
| Total Project Cost | SAR 636.5M | |
| STABILISED ASSET VALUE | NOI SAR 53.5M ÷ 7% cap rate | SAR 764M |
| VALUE CREATED | 1.5x on total cost · 20% ROI | +SAR 127.5M |
| ✦ Cubotic intermediary fee (paid by investor) | 2.5% of land valuation · success fee only | ~SAR 3.1M |
6 Structural Advantages · Investor Case
Our Role · Exclusive Mandate · Deal Facilitation
"We don't just open doors — we structure what happens once they are open."
How to Proceed · Timeline