Saudi Arabia’s PIF launches new hotel management company

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has launched a new hospitality management firm that will operate and manage hotels, combining the highest industry standards with timeless, authentic Saudi hospitality.

The new company, Adeera, will build new world-class Saudi hotel brands and enhance the capacity of the local hospitality sector by launching training and skills development programs in partnership with international hospitality specialists.

“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,” said Khalid Johar, co-head of Local Real Estate Portfolio at PIF.

PIF said 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.

Adeera seeks to unlock new business opportunities, focusing on the Saudi hospitality experience and working with hotel developers to maximise the contribution from the local private sector.

Meanwhile, the launch of the Adeera underscores PIF’s commitment to driving Saudi Arabia’s economic diversification, particularly in the tourism and real estate sectors, following the fund’s vast investments in other hospitality ventures, including Boutique Group, Dan and Asfar.

PIF is central to Crown Prince and Prime Minister Mohammad bin Salman’s plans to diversify the economy away from reliance on oil revenues by building new industries and investing in infrastructure development projects.

Since 2017, the $925bn sovereign fund has created 95 new companies and over 644,000 direct and indirect jobs. Last October, PIF launched its Managers’ Gate platform and the Portfolio Management Development Program – a digital platform for collaboration between the fund and external fund managers.

PIF accounted for about a quarter of the almost $124bn spent by sovereign wealth funds worldwide last year, a Global SWF report showed in January.

The fund owns stakes in tech companies such as ride-hailing firm Uber Technologies, soccer teams including English Premier League’s Newcastle United, electric carmakers Lucid and Ceer and is funding a host of new cities in the desert such as the $500bn futuristic NEOM City and the Red Sea Development Company’s mega tourism project.

Read: Saudi wealth fund PIF to acquire 49% stake in Rocco Forte Hotels