The sovereign wealth fund of Saudi Arabia, known as the Public Investment Fund (PIF), launched the Hotel Management Company (Adeera) on Tuesday, with the ambition to develop and run a string of new hotel brands homegrown in the kingdom.
Adeera will work on brands from mid-scale all the way up to luxury.
While many hotels opening in Saudi have appeared more Western, Adeera commits to building brands centered on Saudi culture. The launch video, for example, features many key aspects of Saudi traditions.
Khalid Johar, co-head of PIF’s local real estate portfolio, said: “The launch of Adeera comes at a pivotal time when Saudi Arabia is expanding its hospitality and tourism offerings. The company has the opportunity to grow the sector by introducing new hotel brands as the country is establishing itself as a major tourism destination. Adeera’s unique focus on Saudi culture and traditions will provide a distinctive edge.”
Key details such as who is running the company, its budget, and its timeline for openings, were not provided in the release.
PIF did not immediately respond to Skift’s request for additional comment.
The release added: “At a time when Saudi Arabia is cementing its place as a major tourism destination, the company seeks to introduce a portfolio of distinctive Saudi hotel brands, serving various segments from mid-range to ultra-luxury, for different categories of visitors. It will unlock new business opportunities, focusing on the Saudi hospitality experience, working with hotel developers to maximize the contribution from the local private sector.”
PIF’s Other Brands?
PIF already has a portfolio of hotel brands, including Boutique Group, a brand specializing in turning former Saudi palaces and government build into hotels; Dan, an agri-tourism-focused company; and Red Sea Global, a development company that also runs a handful of its own boutique properties.
It is unclear how these brands will work with Adeera.
The CEO of Neom, the flagship project under PIF, has said he wants to develop hotel brands.
During a conference in November last year, Neom Hotel Development CEO Chris Newman said: “We’re looking to develop and deploy our own brands and concepts across Neom in the long term. We’re also looking at some world-class partnerships for our assets. To support this overall ambition, we’re looking to partner with some of the best international brands out there to bring their best-in-class capabilities (to Neom).”
Who Does Adeera Have to Compete With?
The Middle East already has a small group of local hotel management companies.
In Dubai, Jumeirah Group serves as the luxury hotel brand of the emirate’s government. More than half of Jumeirah’s portfolio is located in the UAE but it also has properties in Asia and Europe, along with a new signing in Africa announced earlier in the month. Jumeirah has its own mid-market brand known as Zabeel House but it has just one location after its second property closed.
Within Saudi, Jumeirah has a hotel in Makkah and a forthcoming property at The Red Sea.
Emaar Hospitality Group, also born in Dubai, is another major player. The hotel arm of real estate giant Emaar, it runs brands Armani, Address, Palace and Vida, going from ultra-luxury to lifestyle.
In Abu Dhabi, there is Rotana, operating at the premium level with a focus on serving the GCC markets.
