Saudi Arabia's The Tourism Development Fund (TDF) has entered into a tripartite partnership with Ennismore, one of the fastest-growing lifestyle hospitality companies in the world, and Al Rajhi Capital, one of the leading asset managers in Saudi Arabia, to develop 'exciting' lifestyle projects across the kingdom, mostely targeting urban beachfront sites.
These upcmong projects are part of the newly formed Lifestyle Hospitality Fund, which has recently received approval by the Saudi market regulator, Capital Market Authority (CMA).
The fund aims at advancing Ennismore’s lifestyle hotels in the Kingdom with a targeted fund size of $400 million. Ennismore’s globally recognized brands include: 25hours Hotels, Mama Shelter, Mondrian, The Hoxton, Tribe and SLS.
In 2021, during the Future Investment Initiative in Riyadh, TDF and Ennismore signed an MoU to commence the discussions for launching an investment fund. This was followed by TDF, Ennismore, and Al Rajhi Capital signing a tripartite agreement in July this year to establish the now approved lifestyle hospitality fund.
Furthermore, the MoUs were signed with selected investors who expressed interest in coming into the fund with their respective assets.
TDF will be the anchor investor in the newly established investment fund, while Ennismore will lead on the operation of these assets post completion under the umbrella of its lifestyle brands. Al Rajhi Capital will manage the development fund and attract investments, it stated.
The fund will have significant impact on the tourism offering in the KSA as it will facilitate development of 10+ lifestyle hotels across 10 cities, meaning more employment opportunities and creation of quality supply within the hospitality market.
TDF is sponsoring this initiative and committed to oversee the development of such lifestyle projects in alignment with the objectives of the National Tourism Strategy in order to strengthen the Kingdom's status as a top travel destination worldwide.
TDF’s CEO Qusai Al Fakhri said: "Partnerships like this enable development across the tourism ecosystem and contribute to the National Tourism Strategy and the goals of Vision 2030. Reliable growth partners are key to overcoming challenges and striving for progress and development."
Ennismore’s CO-CEO Gaurav Bhushan said: "Our partnership with the TDF and Al Rajhi Capital is a great opportunity for us to bring our lifestyle brands to the kingdom. We look forward to sharing our expertise, including through employing, training, and advancing national competencies, as well as providing lifestyle brand experiences that will build closer connections with international tourists and local guests."
Al Rajhi Capital CEO Waleed AlRashed AlHumaid said: "KSA is witnessing development in all economic sectors, and the tourism sector is a good example of this development and growth, which provides promising investment opportunities for attracting local and foreign investments."
"This partnership reflects the concerted efforts of the public and private sectors to capture good investment opportunities while realize the objectives of Vision 2030," he observed.
In accordance with the ambitious Vision 2030, Saudi Arabia is investing in tourism and hospitality businesses that are creative and purpose-driven to diversify the Kingdom's economy in a sustainable manner, he added.-TradeArabia News Service