Red Sea Global, the Saudi Arabian project developer, is expanding its hotel business with substantial financial backing.
Red Sea Global, the developer behind projects in Saudi Arabia, is expanding its hotel portfolio, supported by a fund with a financial capacity surpassing the combined market values of Hilton, Marriott, and Accor.
Red Sea Global Hospitality functions as a division within Red Sea Global and is not an independent company.
The initiatives encompass various projects such as Sheybarah, a 73-room overwater villa, a mountain-embedded luxury hotel with 60 rooms, and Thuwal, an entire private island near Jeddah. The objective is to inaugurate 16 hotels by 2025 and an additional 34 by 2030. It's noteworthy that the majority of these hotels will be operated by global companies rather than Red Sea Global itself.
Hotel Projects Already Confirmed in the Red Sea:
Desert Rock Resort — 60 keys (operated by Red Sea Global Hospitality)
Faena The Red Sea — 150 keys (operated by Faena/Accor)
Fairmont Red Sea — 200 keys (operated by Accor)
Four Seasons Resort The Red Sea — 149 keys (operated by Four Seasons)
Grand Hyatt The Red Sea — 430 keys (operated by Hyatt)
InterContinental The Red Sea — 210 keys (operated by IHG)
Jumeirah The Red Sea — 159 keys (operated by Jumeirah)
Miraval The Red Sea — 180 keys (operated by Hyatt)
Nujuma, A Ritz-Carlton Reserve — 63 keys (operated by Marriott)
Raffles The Red Sea — 200 keys (operated by Accor)
Rosewood The Red Sea — 200 keys (operated by Rosewood)
Shebara Sheybarah Island — 73 keys (operated by Red Sea Global)
SLS The Red Sea — 153 keys (operated by Ennismore/Accor)
Six Senses Southern Dunes — 76 keys (operated by IHG)
The Red Sea Edition – 240 keys (operated by Marriott)
St. Regis The Red Sea — 90 keys (operated by Marriott)
Red Sea Global Operations and Expansion
Red Sea Global Hospitality is actively recruiting for various crucial positions across their properties, including a general manager, resort manager, chefs, and several department heads.
The entirety of Red Sea Global is under the ownership of the kingdom's sovereign wealth fund, the Public Investment Fund (PIF), with Crown Prince Mohammed bin Salman serving as its chairman. The fund, valued at over $600 billion, is the primary source of funding for tourism development projects led by the prince.
Sebastien Carre, with over two decades of experience at Four Seasons, has been appointed as the new head of hospitality for Red Sea Global. His prior role as regional vice president in Mauritius for two years equips him with relevant experience in the markets that Saudi Arabia is competing against with its new archipelago project.
Carre is tasked with leading the hospitality function of The Red Sea and forming a team comprising skilled hospitality specialists and outstanding craftsmen and women, as outlined in a statement from Red Sea.
Highlighting the connections between Four Seasons and Saudi Arabia, it's noted that billionaire investor Prince Al-Waleed bin Talal owns more than 20% of Four Seasons through his investment vehicle, a percentage that was over 40% until 2021. Additionally, Prince Al-Waleed holds a 50% stake in the anticipated Four Seasons resort at The Red Sea, valued at more than half a billion dollars.
Additionally, Red Sea Global is set to unveil additional self-operated hotels and large-scale projects, extending beyond Saudi Arabia. The company, led by CEO John Pagano, is actively working on a project for more budget-friendly hotel options, expected to open before 2030, contributing thousands of rooms to Saudi Arabia's growing tourism sector. Pagano emphasized the significant market potential in the mid-market segment, particularly in locations near larger urban areas along the Red Sea coast. While European developments are on the horizon, the current focus remains on Saudi Arabia.
Saudi Vision 2030
Aligned with the Saudi Vision 2030, which aims to shift the economy away from oil dependence, the kingdom has made substantial investments in the hospitality and tourism sectors. Notably, the Public Investment Fund and various other Saudi investment funds have financially supported operators like Ennismore, Habitas, and Aman, all of which subsequently announced hotel projects in the country.
Red Sea Global Hospitality is now among the limited group of domestically originated hotel companies in Saudi Arabia. Another prominent player is Boutique Group, also affiliated with the Public Investment Fund. Boutique Group specifically focuses on repurposing former palaces and government buildings in Saudi, transforming them into upscale boutique hotels.
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Credits: Skift