A SAR 1.5 billion ($399 million) hospitality investment fund that will advance lifestyle hotels in Saudi Arabia will be set up by the Tourism Development Fund (TDF) in partnership with Ennismore and Al Rajhi Capital.
Ennismore is the world’s largest and fastest-growing lifestyle hospitality company and Al Rajhi Capital, an Asset Manager in the kingdom.
Media reports said the lifestyle hotels will enhance promising sector-leading opportunities in various tourist destinations within the kingdom.
Under the 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 projects are expected to provide around 2,000 hotel rooms and training opportunities for Saudi nationals.
Through the agreement, TDF strives to promote investments aimed at tourist attraction in line with the National Tourism Strategy, and aims to provide a variety of leisure facilities and F&B experiences.
Chief Executive Officer of TDF Qusai Al Fakhri said: “This partnership shows our commitment to consolidate the kingdom’s position as a global tourist destination by leveraging the promising opportunities the Saudi tourism sector presents.”