Saudi Arabia’s Public Investment Fund (PIF) announced the inception of the Hotel Management Company (Adeera), a new venture dedicated to managing and overseeing hotels. Adeera aims to blend the highest industry standards with the enduring authenticity of Saudi hospitality.
Commitment to local talent
As a fully owned subsidiary of PIF, Adeera is poised to become a national leader, spearheading the Saudi hospitality industry while fostering local talent and expertise. According to a press release, the company’s mission includes the creation of new world-class Saudi hotel brands and the enhancement of the local sector’s capabilities through training and skills development programs in partnership with international hospitality experts.
Diverse offerings for a growing market
The press release emphasized that in alignment with the Kingdom’s ambition to position itself as a prominent tourism destination, Adeera plans to launch a diverse portfolio of Saudi hotel brands tailored to various market segments, ranging from mid-range to ultra-luxury, catering to different visitor categories. The company will explore new business opportunities, aiming to elevate the Saudi hospitality experience and collaborate with hotel developers to maximize involvement from the local private sector.
Strategic timing and cultural focus
Khalid Johar, co-head of Local Real Estate Portfolio at PIF, noted that the launch of Adeera comes at a crucial time as Saudi Arabia is expanding its hospitality and tourism landscape. He indicated that this initiative offers a unique opportunity to enhance the sector by introducing new hotel brands as the nation establishes itself as a significant tourism destination. He also mentioned thatÂ
Adeera’s focus on Saudi culture and traditions would provide a competitive advantage.
Economic growth and investment strategy
According to the release, the establishment of Adeera underscores PIF’s commitment as an industry facilitator in the development of Saudi Arabia’s strategic sectors, driving economic growth and diversification. This initiative further follows a series of significant investments by PIF in the tourism and real estate sectors, including the boutique hospitality firm Boutique Group, which is recognized for transforming historic and cultural palaces into luxury boutique hotels, the agritourism company Dan, and the tourism investment enterprise Asfar.
Alignment with national goals
Moreover, this initiative aligns with Saudi Arabia’s National Tourism Strategy, which aims to attract 150 million visitors and ensure that tourism contributes 10 percent of the nation’s GDP by 2030.
