Saudi Arabia’s Tourism Development Fund (TDF) has announced setting up a SAR1.5 billion hospitality investment fund in collaboration with the UK-based global hospitality developer Ennismore and Al Rajhi Capital, a homegrown asset management company.
The fund is to be utilised for promoting lifestyle hotels and other hospitality projects in various tourist destinations within the Kingdom, SPA reported.
A tripartite agreement between TDF, Ennismore and Al Rajhi has been signed for the formation of the hospitality investment fund.
The agreement followed TDF and Ennismore signing a memorandum of understanding (MoU) to launch an investment fund focused on developing lifestyle hotels in the Kingdom at the 5th edition of the Future Investment Initiative (FII) in October 2021.
Under the latest agreement, the parties would identify locations and provide financing options for projects throughout the Kingdom.
TDF will invest in the newly established investment fund, while Ennismore will lead on developing and operating these projects under the umbrella of its lifestyle brands.
Al Rajhi Capital will manage the investment fund and attract investments.
The agreement was signed by chief executive officer of TDF Qusai Al Fakhri, Co-CEO of Ennismore Gaurav Bhushan, and CEO of Al Rajhi Capital Waleed AlRashed AlHumaid.
Al Fakhri said joining forces with both Ennismore and Al Rajhi Capital was yet another positive step towards realizing the Fund’s ambitions to advance the tourism sector in the country.
“We seek to continuously deliver new and diversified options, enabling the private sector to invest in the growing hospitality sector, with a view to enrich visitors’ experiences while achieving sustainable tourism and economic development,” he said.
Gaurav Bhushan said the partnership with TDF and Al Rajhi was a significant part of the hospitality developer’s growth strategy for the region.
“Ennismore is pleased to further cement its commitment to the growing Saudi hospitality sector through employing, training, and advancing national competencies, as well as providing tourism services that would build closer connections with international and local tourists,” he said.
According to AlHumaid, the tripartite agreement will open up lucrative investment opportunities across various tourist destinations in the country.
Through the agreement, TDF will augment its efforts to promote investments to provide a variety of leisure facilities and F&B experiences at tourist attractions, in line with the national tourism strategy.
The new hospitality investment fund is expected to provide around 2,000 hotel rooms and immense training opportunities for Saudi nationals, while enhancing the quality of investment opportunities and offerings within the sector.
Ennismore is a joint venture between Sharan Pasricha, founder and Co-CEO, and Accor, bringing together a lifestyle powerhouse of 14 brands with 101 operating properties globally, and 137 in the pipeline.
Its brands include 21c Museum Hotel, 25hours, Delano, Gleneagles, Hyde, JO&JOE, Mama Shelter, Mondrian and Morgans Originals.
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