Saudi Arabia’s Tourism Development Fund has signed agreements with Radisson, Minor Hotels and Hyatt for the development of hotels and hospitality projects across the Kingdom.
The fund has signed a memorandum of understanding (MoU) with Minor Hotels with the aim of jointly developing and operating projects including mountain resorts, wellness resorts and urban hotels, with the first project under the partnership set to be announced in the second half of 2023.
The future establishment of a strategic partnership will see the development of hospitality projects like Minor’s flagship brands of Anantara, Avani and Tivoli, including the development of multiple properties under the Avani Hotels & Resorts brand.
Minor – which currently has a portfolio comprising 530 hotels across 56 countries - will act as an operator and partner in each of the projects, which are expected to become distinct destinations.
The Fund has also signed an MoU with Radisson Hotel Group. The partnership between the two parties will see the development of urban hotels, resorts, serviced apartments and other assets over the next several years in the destinations targeted under the Saudi National Tourism Strategy and in line with the Saudi Vision 2030.
The developments will be under Radisson’s leading brands, with the specific brands to be agreed upon by both parties. The first project under the MoU will be announced in the second half of 2023.
The Tourism Development Fund has also signed an MoU with an affiliate of Hyatt Hotels Corporation to establish luxury hotels across Saudi Arabia. These hotels will be developed under Hyatt’s existing trademarks such as Alila Resorts or other trademarks such as Park Hyatt, Hyatt Centric, Grand Hyatt as well as any other Hyatt brands agreed upon by both parties.
Why it matters
These collaborations align with the Saudi Vision 2030 and the Kingdom's National Tourism Strategy, which aims to diversify the Saudi economy and transform Saudi Arabia into a global tourism hub.
They come as investor interest in the Saudi hotel sector continues to grow. In 2022, the Kingdom recorded over 77 million domestic tourists compared to 63.8 million the year before, with companies including Accor, IHG and Ennismore recently expressing fresh interest in the country. The Tourism Development Fund aims to attract 100 million visitors by 2030.
What they said
Qusai Al-Fakhri, CEO of the Tourism Development Fund, said: “We are joining forces with many legacy brands in the tourism, hospitality, and business travel segments as we continue to thoughtfully expand our roster of collaborators. Radisson already has several successful and attractive hotels within the Kingdom; we are glad to expand their roster in line with the National Tourism Strategy. The signing comes at an opportune time when Saudi Arabia is witnessing unprecedented growth. The collaboration with Hyatt will help us to attract tourists and ensure that they receive a comfortable, high-quality experience in the Kingdom’s top tourism destinations.”
Federico Gonzalez, Executive Vice Chairman of Radisson Hotel Group said: "Radisson Hotel Group continues to bring more of its brands to the Kingdom of Saudi Arabia by collaborating with key tourism and hospitality real estate investors. The Saudi Vision 2030 is offering huge prospects across sectors, including hospitality and we are pleased to partner with the Tourism Development Fund to continue to be a part of this growth and exciting future."
Ludwig Bouldoukian, regional vice president, development - Middle East and Africa at Hyatt said: “Saudi Arabia is the largest emerging market in the Middle East and has made significant advances across sectors to springboard its economy. The country has been recognized as one of the world’s fastest growing tourism destinations and we see this as a great opportunity to expand Hyatt's brand footprint while providing exquisite service and care to local and international high-end travellers.”