The Red Sea Project unveils Phase One hospitality portfolio

The Red Sea Development Company (TRSDC) has signed management agreements with nine international hotel brands for the first phase of the world’s most ambitious regenerative tourism project in Saudi Arabia.

The brands onboard for the Phase One of The Red Sea Project include: Edition Hotels and St. Regis Hotels & Resorts, part of Marriott International; Fairmont Hotels & Resorts, Raffles Hotels & Resorts and SLS Hotels & Residences, part of Accor; Grand Hyatt, part of Hyatt Hotels Corporation; Intercontinental Hotels & Resorts and Six Senses, part of IHG Hotels & Resorts; and Jumeirah Hotels & Resorts.

Together, the portfolio of hospitality brands will account for more than 1,700 keys of the total 3,000 planned for the first phase of development. Construction is on track for the developer’s flagship project to welcome its first guests by the end of 2022, ahead of completion in 2023. TRSDC expects to announce further management partnerships for the remaining seven hotels in the coming months.

“We are proud to unveil our collection of unique and diverse hospitality brands that cater to this growing market,” comments John Pagano, CEO at TRSDC. “We are working with world-leading hotel operators who share our vision to deliver exciting growth opportunities for the Kingdom’s tourism and hospitality market, whilst protecting the natural environment, benefitting our local community and delivering extraordinary and immersive guest experiences.”

Pagano adds: “Such partnerships with globally recognised and respected brands signifies the growing confidence in our business, our flagship destination and in Saudi Arabia as a tourism destination.

Built on a vast archipelago of more than 90 undeveloped islands spanning 28,000km² of Saudi Arabia’s west coast, The Red Sea Project is designed to bring hotels, residential properties, commercial spaces and entertainment venues to the largely undiscovered destination. Phase One alone is set to introduce a luxury marine, an 18-hole championship golf course and an international airport expected to accommodate one million visitors per year by 2030.

Upon completion in 2030, the site will comprise a total of 50 resorts, offering up to 8,000 guestrooms and more than 1,000 residential properties across 22 islands and six inland sites. Once fully operational, the project is expected to create upwards of 70,000 new jobs, while contributing around SAR 22 billion (USD $5.3 billion) to the nation’s GDP.

In line with Vision 2030 and TRSDC’s commitment to regenerative tourism development, the brand’s sustainability standards will be factored into the development: visitors flying into the airport will be capped, energy and water will be conserved and recycled, and a circular waste management system will be implemented to achieve zero waste to landfill. ‎

“Hospitality is the anchor of The Red Sea Project,” explains Jay Rosen, Chief Financial Officer at TRSDC. “We are determined to create a world-class luxury destination and the hotel brands we partner with play a crucial role in delivering on this ambition. Our partnerships are cemented through a collaborative framework that emphasises synchronicity between all brands. In doing so, we aim to create more value and maximise destination success, empowering stakeholders to benefit from shared best practices and economies of scale.

Rosen concludes: “The hotel management agreements unveiled today mark a significant milestone for us and we welcome more hotel operators, developers and investors to join us in our journey to build a thriving destination for visitors from around the world.”