Regal Hotels Group, Cosmopolitan International Group, and the Ministry of Investment of Saudi Arabia (MISA) have signed a Memorandum of Understanding (MoU) to jointly explore a strategic partnership in hotel development and management.
The objective of the MoU is to acquire, own, develop, and manage a network of sustainable hotels, serviced apartments, and centres of innovation under Regal Hotels’ iclub brand to foster tourism, innovation, and technology exchange between China, including Hong Kong, and the Kingdom of Saudi Arabia.
The potential partnership will aim to leverage the combined strengths of Regal Hotels and Cosmopolitan, together with MISA’s expertise in shaping and driving investment into high value tourism opportunities.
Regal Hotels intends to build about 100 hotels around the world worth US$5 billion with an emphasis on the Middle East. According to Regal’s vice-chairman and managing director Poman Lo, the company plans to have about 30 hotels in Saudi Arabia. She said: “We are delighted to partner with MISA to accelerate our shared vision of becoming a global leader in delivering world-class services through our hospitality management expertise and embracing sustainable technologies.”
Regal Hotels will integrate cutting-edge technologies and sustainable practices into their hospitality and real estate projects, with plans to finish construction by 2035. Saudi Arabia’s Ministry of Investment will help secure funds for the projects, and Regal is also open to accepting capital from investors in Mainland China and Hong Kong.
The MoU will also help build the Kingdom’s presence in the tourism, innovation, and sustainability sectors, noted MISA’s deputy minister of investment, Saleh Al-Khabti.
Meanwhile, Cosmopolitan expects to contribute its experience and expertise in project management of real estate and hotel development projects in Mainland China and Hong Kong.
Furthermore, Regal Hotels and Cosmopolitan will evaluate opportunities to invest in an asset management platform through joint ventures, investment funds, and/or publicly listed companies in the Kingdom of Saudi Arabia and/or Hong Kong.
