Tourism Development Fund, Ennismore and Al Rajhi Capital Sign an Agreement to Establish SAR 1.5 Billion Investment Fund in Hospitality Sector
Saudi Arabia, July 2022: The Tourism Development Fund (TDF) today announced the signing of a tripartite agreement with Ennismore, the world’s largest and fastest-growing lifestyle hospitality company, and Al Rajhi Capital, one of the leading Asset Managers in the Kingdom of Saudi Arabia. The agreement aims to establish a hospitality investment fund that will advance lifestyle hotels with a capital of SAR 1.5 billion, enhancing promising sector-leading opportunities in various tourist destinations within the Kingdom.
This partnership now achieves the signing of the fund establishment agreement, which compliments the initial endeavor where TDF and Ennismore signed an MoU to launch an investment fund focused on developing lifestyle hotels in the Kingdom, as announced during the 5th edition of the Future Investment Initiative (FII) in October 2021.
Under this 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 Qusai Al Fakhri, Chief Executive Officer of the Tourist Development Fund, Gaurav Bhushan, Co-CEO of Ennismore, and Waleed AlRashed AlHumaid, CEO of Al Rajhi Capital, who attend on his behalf, Assem T. Raqaban, Head of Real Estate.
Qusai Al Fakhri, Chief Executive Officer of TDF said: “This partnership shows our commitment and dedication to our initial MoUs and marks an important milestone towards fulfilling the targets of the National Tourism Strategy to consolidate the Kingdom’s position as a global tourist destination by leveraging the promising opportunities the Saudi tourism sector presents.”
“Joining forces with both Ennismore and Al Rajhi Capital is yet another positive step towards realizing our ambitions to advance the tourism sector. 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.”
Gaurav Bhushan, Co-CEO of Ennismore said: “Our partnership with TDF and Al Rajhi is a significant part of our 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. We are pleased to collaborate with TDF and to contribute to the promotion of the tourism sector in the Kingdom.”
Waleed AlRashed AlHumaid, CEO of Al Rajhi Capital, said: “The agreement reflects the importance of partnership between the private and public sector, let alone opens up lucrative investment opportunities where capitals can be invested in national programs geared towards the tourism industry, The industry has shifted to the development of modern and sustainable tourist destinations, capitalizing on the extraordinary potential and wealth of our national heritage, tourism and landmarks that help draw in more local and Global investments and push us closer to reaching our national economic objectives. This also reflects Al Rajhi Capital’s unwavering commitment to delivering the most effective and cutting-edge financing and investment solutions”.
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. These efforts are 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. Furthermore, the establishment of the fund highlights a promising opportunity to invest in and benefit from the Kingdom’s tourism renaissance.
Ennismore is a joint venture between Sharan Pasricha, founder & Co-CEO, and Accor, bringing together a lifestyle powerhouse of 14 brands with 101 operating properties globally, and 137 in the pipeline. The Ennismore brands are: 21c Museum Hotel, 25hours, Delano, Gleneagles, Hyde, JO&JOE, Mama Shelter, Mondrian, Morgans Originals, SLS, SO/, The Hoxton, TRIBE and Working From_.
Bringing lifestyle hotels to Saudi Arabia is at the heart of the Kingdom’s strategy for welcoming brands that are rooted in purpose and creativity, and which take an active role in driving the community forward.