Arab News, Mon, Feb 12, 2024 | Shaban 2, 1445
Red Sea Global closes $522m financing deal with Riyad Bank for luxury hotel
Red Sea Global has secured a SR2 billion ($522 million) financing deal to
advance the development of the Four Seasons Hotel on Shura Island in Saudi
RSG announced that financial closure with Riyad
Bank supports its ongoing joint venture with Kingdom Holding Co., a Saudi-based
investment firm focused on enhancing the hotel's development.
The luxury property, featuring 159 hotel units, is
expected to open its doors in early 2025.
John Pagano, CEO of RSG, said: “The Kingdom’s
tourism potential is truly limitless and with our first two hotels now open, we
are at the vanguard of putting Saudi Arabia on the global tourism map.”
He added: “This deal signifies the confidence of
the private sector in the country, its people and in Red Sea Global. Riyad Bank
has been with us since our first debt financing deal in 2021 and we’re honored
to have them partner with us once again.”
This effort is an integral part of the initial
phase of the Red Sea project, aiming to introduce a diverse range of luxury
resorts, residential units, and a championship golf course. Additionally, it
will include a marina for 118 yachts and various retail, dining, and
“Red Sea Global has an incredible responsibility
to be an enabler of the Kingdom’s Vision 2030, and added to this, it set its own
incomparable ambitions to deliver development in a way that is responsible and
regenerative,” Nadir Al-Koraya, CEO of Riyad Bank, said.
“We believed in the vision its leadership
presented back then at our first encounter and last year, when the Red Sea
welcomed its first guests, our faith was shown to be well-founded. We’re
privileged to once again have the opportunity to support one of the world’s most
ambitious developers,” he added.
The destination began receiving its initial
visitors in 2023, and the Red Sea International Airport already operates regular
Slated for full completion by 2030, Shura Islands
is set to welcome its first guests in 2025. It is expected to feature 50 resorts
offering up to 8,000 hotel rooms, over 1,000 residential units across 22
islands, and six inland sites.
Formalized in October 2023, RSG’s joint venture
with Kingdom Holding Co. brings together the two parties at a 50/50 partnership
and an SR2 billion investment.