PIF is Set to Redefine Tourism in Saudi Arabia with a $900 Million Investment in Aman Hotel Group
PIF is Set to Redefine Tourism in Saudi Arabia with a $900 Million Investment in Aman Hotel Group :
PIF is Set to Redefine Tourism in Saudi Arabia with a $900 Million Investment in Aman Hotel Group
Public Investment Fund, a Saudi Arabian Company, recently made a $900 investment in Aman Luxury Hotel Group. The investment aims to facilitate the expansion of luxury hotels and branded residences in Saudi Arabia and beyond.
All there is to know about the $900 Million Investment Deal
Aman Hotel Group is renowned for its several luxurious hotels and branded residences worldwide. Its quality services have made Public Investment Fund, a Saudi Arabian company, and Cain International, a London-based firm, invest $900 million in the Group’s hospitality business.
The investment by PIF, according to Turqi Alnowaiser, its Deputy Governor, is to geared toward reflecting the confidence in hospitality and tourism in Saudi Arabia. Likewise, the investment was also an opportunity for the company to align its strategy to invest in promising sectors to encourage sustainable returns within Saudi Arabia and worldwide. On Aman’s part, the investment is necessary to construct new properties and further develop its venture.
The partnership between the three companies did not just begin. For the last eight years, these companies have worked closely together, intending to create an ultra-model facility that redefines tourism and sets the pace for other actors in the industry. As stated by the CEO of Aman Group, Vlad Doronin, the partnership seeks to maximize the potential of Aman to bring about considerable growth for the company. The brand weighs in at $3 billion due to the substantial investment.
Notably, Aman Group has been doing quite well for itself, having raised more than $2.4 billion in sales in the past year. The $900 million is to be used to improve existing properties, aid in purchasing and acquiring new properties, and assist in constructing pipelines in Aman and Janu destinations. It also projects more sales in countries where it is located, like Japan and the United States.
Implications for Saudi Arabia
Saudi Arabia’s primary revenue source is the oil and gas trade, which has remained the case for years. However, the country tilts toward diversifying its economy to encourage widespread growth and reduce the reliance on oil and gas. One of the ways it aims to diversify is through the tourism sector. The country was to be a substantial tourist site by 2030.
The need to achieve Saudi Arabia’s goals is why the PIF’s investment deal greatly benefits Saudi Arabia. Not only does it aid the achievement of Saudi Arabia’s vision, but it also helps its preparedness and drive as the government hopes to have at least 100 million tourists by 2030.
Conclusion
The Aman deal has been in the works for a while, and upon conclusions, work has begun. While there is no known timeline for its activities, one can only presume that the Group will endeavor to finish its projects as soon as feasible to start providing hospitality services to tourists.
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Last Updated on 10 months by News Editor
