RIYADH: Saudi giga-project Red Sea Global has agreed a SR2 billion ($533 million) investment deal with Kingdom Holding Co. to develop two new hospitality venues.
The joint venture will see the companies in a 50-50 partnership to develop and own the Four Seasons Resort Red Sea, expected to open in early 2025.
The luxury resort is situated on Shura Island – the main hub at the Red Sea destination.
The agreement will also see the development of Thuwal Private Retreat, located on a 1.7 hectare islet in a coral archipelago on the Red Sea coast.
The deal was announced at the seventh edition of the Future Investment Initiative in Riyadh, and John Pagano, group CEO of RSG, said: “This partnership strengthens our unwavering commitment to transforming the tourism landscape in Saudi Arabia.
“We share a common vision of creating extraordinary destinations that not only drive economic growth and job creation, but also preserve precious ecosystems, aligning perfectly with the aspirations outlined in Vision 2030.”
Talal Ibrahim Al-Maiman, CEO of KHC, said: “We are proud to partner with RSG in the execution of one of the Kingdom’s most exciting projects and look forward to creating value for our respective shareholders. This investment will form part of our broader strategy on further investments in the Saudi Arabian high growth market.”
Shura Island will be home to 11 resorts in total, and will include residential properties, an 18-hole championship golf course, and a 118-berth marina.
It will also offer 149 rooms and suites, plus 31 residential properties, as well as six restaurants and lounge outlets, meeting and events spaces, a marine discovery center, and a Kids For All Seasons space.
Thuwal Private Retreat will host a main three-bedroom villa, three one-bedroom suites, a beach club, gym and wellness center.
“Thuwal Private Retreat has been created to allow guests the chance to disconnect from the stresses of daily life, and instead reconnect with their closest companions. Our belief is that the sublime Red Sea coast combined with tailored luxury experiences will deliver a peerless escape for the most discerning travelers,” said Pagano.
The creation of Thuwal Private Retreat represents a new phase for RSG, with the destination sitting separately to The Red Sea and AMAALA, and as a wholly RSG-owned brand. There are no third-party hospitality or hotel operators involved for the first time in RSG’s development history.
Pagano added: “This is a milestone for us personally. It is the latest project we can reveal since we announced our expanded portfolio of projects last year and it is significantly advanced in terms of delivery. It is also the first time we are creating a destination owned and operated end to end by the expert team here at Red Sea Global, from development and planning to accommodation and guest services.”