Riyadh-based investment bank Albilad Capital acquired the 269-room Mövenpick Hotel & Residences Riyadh for approximately 1 billion Saudi Arabian riyals ($266.7 million).
Albilad bought the hotel — which opened in December 2021 in the Al-Ghadeer district of the Saudi capital adjacent to the King Abdullah Financial District — via its Albilad Hospitality Fund. The property has 90 luxury residences. Mövenpick is part of Accor's brand family.
Zaid Almufarih, Albilad's CEO, called the deal "a strategic step forward" and a testament to Saudi Arabia's rapidly expanding tourism sector.
He added the firm’s strategy was to provide an “expected average annual return of 8.7% over the next three years.”
Saudi Arabia’s Vision 2030 tourism plan and giga-projects are the focus of that expanding tourism sector, which also includes upcoming mega events such as the 2027 Asian Games, Expo Riyadh 2030 and 2034 FIFA World Cup.
According to a January report from hospitality law firm Fieldfisher, Saudi Arabia has a hotel development pipeline valued at $110 billion consisting of approximately 310,000 rooms.