20 JULY 2022
The tripartite agreement between with Ennismore, Tourism Development Fund (TDF), and Al Rajhi Capital establishes a hospitality investment fund that will advance lifestyle hotels with a capital of SAR 1.5 billion (USD 400 million), enhancing promising sector-leading opportunities in various tourist destinations within the Kingdom of Saudi Arabia.
The fund establishment agreement compliments the initial MoU announcement during the 5th edition of the Future Investment Initiative (FII) in October 2021 where TDF and Ennismore endeavoured to launch an investment fund focused on developing lifestyle hotels in the Kingdom.
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.
Providing a variety of leisure facilities and F&B experiences, the fund aims to enrich visitor experiences through the development of modern and sustainable tourist destinations that build closer connections with international and local tourists. These efforts are expected to provide around 2,000 hotel rooms and Ennismore is pleased to further cement its commitment to the growing hospitality sector in the region through the employing and training of Saudi nationals.
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.