PIF Launches New Hospitality Firm to Meet Tourist Demand
As Saudi Arabia’s tourism sector expected to witness rapid growth in the coming years and over 80 internationally reputed hotels coming up in the Kingdom, the country’s sovereign wealth fund – Public Investment Fund – (PIF) has launched the Hotel Management Company (Adeera).
Adeera, a wholly owned PIF company, is a new hospitality management firm that will operate and manage hotels, combining the highest industry standards with timeless authentic Saudi hospitality to meet the demand for tourists visiting the country.
Adeera will be a national champion, leading the Saudi hospitality sector and enhancing local talent and expertise. It aims to build new world-class Saudi hotel brands and to enhance the capacity of the local sector by launching programs for training and skills development, in cooperation with international hospitality specialists.
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 visitor. It will unlock new business opportunities, focusing on the Saudi hospitality experience, working with hotel developers to maximise the contribution from the local private sector.
Khalid Johar, Co-head of Local Real Estate Portfolio at PIF, said that 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,” Johar said.
The establishment of Adeera underlines PIF’s role as an industry enabler in developing Saudi Arabia’s strategic sectors, driving economic growth and diversification.
It follows a series of significant investments by PIF in both the tourism and real estate sectors. This includes investments such as the hospitality company Boutique Group, which specialises in developing historic and cultural palaces into luxury boutique hotels, the agri-tourism company Dan and the tourism investment company Asfar.
Saudi Arabia’s National Tourism Strategy aims to attract 150 million visitors and have tourism contribute 10% of the nation’s GDP by 2030.
Saudi Arabia Ranked Third Globally
Saudi Arabia has been ranked third globally in the growth rate of international tourist arrivals with over 61% in the first eight to nine months of 2024 compared to the same period in 2019, according to UN Tourism.
Through the Kingdom’s Ministry of Tourism’s plans and strategies, this consistent performance and continued success in the tourism sector underlines the efforts of all stakeholders in the tourism ecosystem aimed at achieving the objectives of Saudi Vision 2030.
The significant increase in the number of inbound tourists also reflects travellers’ confidence in the Kingdom’s attractive and diverse tourism offering, thereby enhancing Saudi Arabia’s standing as a leading global tourist destination.
Earlier, Saudi Arabia had advanced 15 positions in the global ranking of inbound tourist spending, leading the upward movement among the top 50 countries and ranking 12th globally in 2023 compared to 2019.
Additionally, the Kingdom led the G20 countries in the growth of international tourist arrivals in the first seven months of 2024 compared to 2019, according to Saudi Arabia’s Tourism Ministry.
