The India-listed infrastructure company Ashoka Buildcon announced that its Saudi joint venture received the main construction work letter of acceptance for Diriyah II One Hotel project from Diriyah Company which serves as a primary Public Investment Fund PIF organization responsible for developing the destination.
The new hotel functions as the main luxury accommodation facility which will support Saudi Arabia’s plan to increase international and regional tourist traffic to the historic center of the Kingdom.
The joint venture brings together Ashoka Buildcon Limited for Contracting, a wholly owned Saudi subsidiary of Ashoka Buildcon, and local engineering and construction specialist BEC Arabia Contracting Co. The accepted bid value is approximately SAR 717 million, or about 191 million US dollars, excluding VAT, with Ashoka Buildcon holding a 49 percent stake translating into a share of about SAR 351.37 million, estimated at around rupees 846 crore.
The contract duration is 27 months from the effective date of 5 February 2026, placing the hotel’s completion broadly in line with Diriyah’s ongoing infrastructure rollout around the middle of this decade. The build is expected to synchronise with broader precinct upgrades so that the hotel opens into a mature, experience‑rich urban heritage landscape rather than an isolated stand‑alone property.
Diriyah’s rise as a cultural tourism hub
Diriyah, on the north‑west edge of Riyadh, is being reimagined as Saudi Arabia’s foremost heritage‑driven lifestyle and tourism destination, built around the UNESCO‑listed At‑Turaif district and the mud‑brick architecture of the Najdi style. The wider master plan spans roughly 14.2 million square metres, with a long‑term vision that includes about 40 luxury hotels, 30,000 residences and a dense mix of retail, dining and cultural venues.
Diriyah Company, fully owned by the PIF, is responsible for delivering this city of earth megaproject, which aligns closely with Vision 2030 targets to diversify the Saudi economy and grow tourism’s share of GDP. The hospitality layer alone is expected to feature dozens of international brands, with previously announced properties from groups such as Four Seasons, The Langham and Marriott among others, underscoring the area’s positioning in the upper tier of the global luxury travel market.
Diriyah’s leadership has repeatedly stressed that hotels here are intended not just as places to sleep, but as gateways into Saudi culture, food, art and history. Seasonal programming such as Diriyah Season is designed to attract hundreds of thousands of visitors with events, festivals and experiences, creating year‑round demand for high‑quality accommodation in and around the old capital. More
