Saudi Arabia: 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.
The Tourism Development Fund (TDF) was established in 2020 with a capital of USD 4 billion to drive tourism growth in Saudi Arabia. TDF enables local and international investors looking to benefit from the sector’s high potential by providing viable funding solutions and leveraging its wide network of partners including government entities, public and private lenders as well as operators and service providers…all deployed to bring investments to life.
Positioned firmly at the heart of Saudi’s tourism ecosystem, TDF is well placed to offer guidance and funding options to SMEs, and tailored investment solutions to qualified investors. The Fund’s vision is to contribute towards achieving the National Tourism Strategy’s objectives by unlocking opportunities in the tourism value chain for private sector investors, while focusing on long-term sustainability.
Ennismore is a creative hospitality company with a global collective of entrepreneurial and founder-built brands with purpose at their heart. It curates and manages unique properties and experiences in some of the most exciting destinations around the world.
Founded in 2011 by entrepreneur Sharan Pasricha, Ennismore and Accor entered a joint venture in 2021 to create a new autonomous entity, with Accor holding a majority shareholding. Creating the world’s fastestgrowing lifestyle hospitality company, it brings together Ennismore’s know-how in building brands with creative storytelling, design, and authentic experiences, with Accor’s wealth of knowledge in delivering scale, network growth and distribution.
Under the leadership of Sharan Pasricha, Founder & Co-CEO, and Gaurav Bhushan, Co-CEO, Ennismore comprises 14 brands - with 101 operating properties and further 137 (signed HMA & LOI) in the pipeline and a collection of over 150 culturally relevant and diverse restaurants and nightlife destinations.
Ennismore puts innovation at the centre of everything it does, with four dedicated in-house specialist studios, which obsess every guest touchpoint including Carte Blanched – a fully integrated F&B concept platform; a creative studio of interior and graphic designers; a digital product and tech innovation lab, and a partnerships and collaborations unit.
Ennismore has been included in Fast Company’s World’s Most Innovative Companies lists in 2020 and 2021; ranked#29 in FT1000: Europe’s Fastest-Growing Companies; and is part of FT Future 100 - the UK’s fastestgrowing businesses that are shaping the future of their sector.
The Ennismore brands: 21c Museum Hotel, 25hours Hotels, Delano, Gleneagles, Hyde, JO&JOE, Mama Shelter, Mondrian, Morgans Originals, SLS, SO/, The Hoxton, TRIBE and Working From_. ennismore.com
ABOUT AL RAJHI CAPITAL
Founded in 2008, Al Rajhi Capital is a leading financial services Company, which provides a wide range of innovative and bespoke financial products and services across Brokerage, Asset Management, and Investment Banking.
Headquartered in Riyadh and operating from investment centers and offices across the Kingdom of Saudi Arabia, the Company is uniquely positioned to provide its client base with seasoned advice based on global experience and regional expertise.
As the investment banking subsidiary of Al Rajhi Bank, one of the largest Islamic banks in the world, Al Rajhi Capital combines the strength and resources of its regional presence with best-in-class investment advice and insightful research, to deliver fully integrated and streamlined solutions.