Saudi-based Tourism Development Fund (TDF) has signed a deal with Ennismore, a lifestyle hospitality company, and Al Rajhi Capital, a leading asset manager, to set up a USD 400 million fund that will focus on development of lifestyle hotels.
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 include: 21c Museum Hotel, 25hours, Delano, Gleneagles, Hyde, JO&JOE, Mama Shelter, Mondrian, Morgans Originals, SLS, SO/, The Hoxton, Tribe and Working From.
The move is aimed at helping enhance promising sector-leading opportunities in various tourist destinations within the kingdom. This partnership deal compliments the initial endeavour in October last year when TDF and Ennismore signed the MoU to launch an investment fund focused on developing lifestyle hotels in the kingdom at the 5th edition of the Future Investment Initiative (FII).
Under this latest agreement, the companies will identify locations and provide financing options for projects throughout the kingdom.
TDF said it 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, it added.
“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,” said Al Fakhri.
