RIYADH: Saudi Arabia is making a significant move to develop its own homegrown hospitality brands with the launch of Adeera, a new hotel management company fully owned by the Public Investment Fund.
The new venture aims to introduce a variety of local hotel brands designed to meet the needs of a diverse range of visitors, from mid-range options to ultra-luxury accommodations.
As Saudi Arabia continues to position itself as a major global tourism destination, the launch of Adeera comes at a crucial time.
According to a press release, the company is poised to unlock new business opportunities within the Kingdom’s hospitality sector by focusing on the unique Saudi experience.
Adeera will work closely with hotel developers to maximize the involvement of the local private sector, creating a platform for the growth of homegrown hospitality brands.
Khalid Johar, co-head of PIF’s Local Real Estate Portfolio, emphasized the significance of the launch. “The timing of Adeera’s introduction aligns perfectly with Saudi Arabia’s expansion in hospitality and tourism. The company has the opportunity to help propel the sector forward by introducing innovative hotel brands, supporting the Kingdom’s growing reputation as a world-class tourism destination.”
Johar also highlighted that Adeera’s distinct focus on Saudi culture and traditions would give the company a competitive edge in a rapidly evolving market. The goal is to create an authentic Saudi hospitality experience that resonates with both local and international visitors, celebrating the Kingdom’s rich heritage while offering world-class service.
The launch of Adeera marks another key step in PIF’s broader efforts to diversify Saudi Arabia’s economy and drive sustainable growth.
The press release noted that this move follows several significant investments by PIF in the tourism and real estate sectors. These investments include the luxury boutique hotel company Boutique Group, which specializes in transforming historic and cultural palaces into upscale boutique hotels; Dan, an agri-tourism company; and Asfar, a tourism investment firm.
Saudi Arabia’s National Tourism Strategy is an ambitious plan aimed at attracting 150 million visitors and generating 10 percent of the country’s gross domestic product from tourism by 2030. PIF’s investments are aligned with this vision, focusing on strategic sectors such as infrastructure, real estate, technology, and renewable energy to help establish Saudi Arabia as a leading global investment hub.
In addition to strengthening local industries, PIF is also focused on fostering innovation, creating employment opportunities, and attracting international investment. Through these initiatives, the fund aims to ensure sustainable economic growth and enhance the Kingdom’s competitiveness on the global stage.
The Kingdom’s hotel sector is already experiencing significant growth. According to recent data from the Central Bank of Saudi Arabia, spending in hotels saw a notable week-on-week increase of 11.4 percent from Nov. 10 to 16, reaching SR399.7 million ($106.4 million).
This follows an 8.5 percent increase in hotel spending during the week of Oct. 13-19, despite a broader decline in point-of-sale transactions, as reported by SAMA.
This upward trend in hotel spending underscores the growing demand for high-quality accommodations and further highlights the potential for continued growth within the hospitality sector.
With Adeera, Saudi Arabia is poised to take a leading role in shaping the future of its hospitality industry, blending the best of modern hotel management with a deep respect for its cultural and historical roots.
