Saudi Arabia: Ennismore and the Tourism Development Fund (TDF) has signed a Memorandum of Understanding (MoU) to potentially establish a USD $400 million fund to support Ennismore’s expansion across the region.
Ahmed Al Khateeb, minister of tourism for Saudi Arabia and chairman of TDF, Sébastien Bazin, chairman and CEO of Accor, and Qusai Al-Fakhri, CEO of TDF, signed the MoU in the presence of Sharan Pasricha and Gaurav Bhushan, co-CEOs of Ennismore.
The arrangement would see TDF identify locations and provide financing options for projects before handing over to Ennismore to lead on programming, design and operations.
Destinations include Riyadh, Jeddah, Eastern Province, Aseer, Al Ula, Taif, Madinah, Al-Baha, Hail and Al-Jouf, delivering around 2,000 keys. TDF and Ennismore are committed to employing, training, and developing Saudi talent, creating up to 3,000 jobs.
Brands under Ennismore include 21c Museum Hotel, 25hours, Delano, Gleneagles, Hyde, JO&JOE, Mama Shelter, Mondrian, Morgans Originals, SLS, SO/, The Hoxton, TRIBE and Working From_.
Qusai Al-Fakhri, CEO of TDF, said: “This MoU marks an important milestone for TDF as we continue to enable private sector investors to benefit from the massive opportunities offered by Saudi’s growing tourism sector. The fund would channel private sector investments to various areas of the Kingdom, enriching the visitor experience and enhancing the value of strategic projects through globally renowned hospitality brands. These new lifestyle destinations would create unique experiences for visitors and residents to enjoy, providing them with exciting entertainment and F&B offerings, as well as co-working spaces. They would also focus on ensuring the social, environmental, and economic sustainability of the areas they are located in.”
Gaurav Bhushan and Sharan Pasricha, co-CEO’s of Ennismore, added: “Saudi Arabia is a key growth market for Ennismore and we’re delighted that this partnership with TDF cements our commitment to the Kingdom’s tourism sector. By expanding our presence across Saudi Arabia, we’re proud to be supporting the creation of investment opportunities and jobs that will help enrich the tourism experience. We look forward to bringing our brands with their unique design and authentic experiences to the Kingdom.”
Ennismore closed its all-share merger with Accor in October 2021. The portfolio includes 87 operating properties with 141 hotels in the pipeline.
TDF was established in June 2020 with a capital of USD four billion to drive tourism growth in Saudi Arabia.