Saudi-based Tourism Development Fund (TDF) has signed a tripartite agreement with Ennismore and Al Rajhi Capital, to establish a hospitality investment fund with a capital of $400M that will advance lifestyle hotels.
Ennismore is a joint venture between Sharan Pasricha, Founder and 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 complements 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.
The agreement was signed by TDF Chief Executive Officer Qusai Al Fakhri, Ennismore Co-CEO Gaurav Bhushan and Al Rajhi Capital CEO Waleed AlRashed AlHumaid at a key ceremony held in Riyadh.
“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,” noted Al Fakhri.
