Red Sea Global (RSG) has successfully secured a financing package worth SR2 billion (approximately $522 million), earmarked for the construction of the Four Seasons Hotel on Shura Island, located within the Kingdom of Saudi Arabia.
The company has achieved financial closure with Riyad Bank, cementing a partnership that bolsters the joint effort with Kingdom Holding Co., a Saudi investment entity. This collaboration is poised to accelerate the hotel’s construction endeavours.
Upon completion, the opulent establishment will boast 159 guest accommodations and is slated to commence operations in early 2025.
John Pagano, the Chief Executive Officer at RSG, expressed his enthusiasm, stating, 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.
Pagano further acknowledged the deal as a testament to the private sector’s faith in the nation, its populace, and in RSG. He mentioned Riyad Bank’s ongoing support since their initial debt financing arrangement in 2021, conveying gratitude for their renewed partnership.
The Four Seasons Hotel is a cornerstone project of the Red Sea initiative’s first phase, set to introduce an array of lavish resorts, residential spaces, and a championship golf course. The development also includes plans for a marina capable of accommodating 118 yachts and a variety of commercial, gastronomic, and entertainment facilities.
Nadir Al-Koraya, CEO of Riyad Bank, highlighted RSG’s pivotal role in facilitating Saudi Arabia’s Vision 2030. He said, 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.
Al-Koraya reaffirmed the bank’s commitment, recalling the conviction they held from their initial engagement with RSG, which has since been validated by the Red Sea project welcoming its first visitors.
The Red Sea destination began hosting early visitors in 2023, with the Red Sea International Airport now managing regular internal flights. The comprehensive Shura Island development is anticipated to reach full completion by 2030, featuring a collection of 50 resorts with up to 8,000 rooms, in addition to over 1,000 residential properties spread across 22 islands and six inland sites.
Established in October 2023, the 50/50 joint venture between RSG and Kingdom Holding Co. reflects a mutual investment of SR2 billion, signifying a robust alliance in the region’s burgeoning tourism sector.