RIYADH – The Tourism Development Fund (TDF), which has entered into a tripartite partnership with Ennismore, the world’s fastest growing hospitality company, and Al Rajhi Capital, one of Saudi Arabia’s leading asset managers, has identified several sites to develop an interesting lifestyle. developments in the Kingdom, including urban waterfront sites.
The projects to be developed are part of the newly established Lifestyle Hospitality Fund, which recently received approval from Saudi Arabia’s market regulator, the Capital Market Authority (CMA). The fund aims to promote Ennismore’s lifestyle hotels in the Kingdom, with a target fund size of $400 million (SR1.5 billion).
In 2021, during the Riyadh Future Investment Initiative, TDF and Ennismore signed a memorandum of understanding to begin discussions to launch an investment fund. This was followed by TDF, Ennismore and Al Rajhi Capital signing a tripartite agreement in July this year to set up the now approved lifestyle hospitality fund.
Moreover, MOUs have been signed with selected investors who have expressed interest in entering the fund with their respective assets.
TDF will be the anchor investor in the newly established investment fund, while Ennismore will lead the exploitation of these assets after completion under the umbrella of its lifestyle brands. Al Rajhi Capital will manage the development fund and attract investment.
Ennismore is a global collective of entrepreneurial brands and founders with creativity and purpose at their heart, bringing together a lifestyle powerhouse of 14 brands with 103 operating properties and 144 in development. Globally recognized Ennismore brands include: 25hours Hotels, Mama Shelter, Mondrian, The Hoxton, TRIBE, SLS, SO/ and coworking brand, Working From_.
The fund will have a significant impact on the tourism offer in the Kingdom, as it will facilitate the development of more than 10 lifestyle hotels in 10 cities, which means more employment opportunities and the creation of a quality offer in the hospitality market.
TDF is sponsoring this initiative and is committed to overseeing the development of such lifestyle projects in line with the objectives of the National Tourism Strategy to strengthen the Kingdom’s status as a leading global tourism destination.
TDF CEO Qusai Al-Fakhri said: “Partnerships like this enable development in the tourism ecosystem and contribute to the National Tourism Strategy and Vision 2030 goals. Trusted growth partners are key to overcoming challenges and fighting for progress and development. Our sincerest thanks to the CMA for agreeing to this significant development.”
Ennismore CO-CEO Gaurav Bhushan said: “Our partnership with the Tourism Development Fund 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 hiring, training and developing national skills, as well as delivering lifestyle brand experiences that will build stronger connections with international tourists and local guests.”
Al Rajhi Capital CEO Waleed AlRashed AlHumaid said: “The Kingdom of Saudi Arabia is witnessing development in all economic sectors and the tourism sector is a good example of this development and growth, which offers promising investment opportunities to attract local investment and foreign
“This partnership reflects the concerted efforts of the public and private sectors to capture good investment opportunities while achieving the goals of Vision 2030. I would like to thank the Capital Markets Authority for enabling financial institutions to offer various products that meet the various objectives of investment companies.”
In line with the ambitious Vision 2030, Saudi Arabia is investing in tourism and hospitality businesses that are creative and geared towards diversifying the Kingdom’s economy in a sustainable manner. – SPA