Shuaa Saudi hospitality fund lures $240m

Dubai: Shuaa Capital Saudi Arabia on Monday said it has successfully closed Shuaa Saudi Hospitality Fund I, a Sharia-compliant closed-end fund which aims to develop and own 17 hotel properties, furnished apartments, and resorts across the kingdom comprising 5,000 rooms.

As of yesterday, commitments from regional, institutional and individual investors totalled 900 million Saudi riyals ($240 million) for this initial closing and it is anticipated that a further 1.1 billion riyals ($293.3 million) will be fully subscribed by the second and final closing.

Eyad Duwaji, chairman of Shuaa Partners, said, "The initial closing of the Saudi Hospitality Fund follows the earlier successful initial closing of the parent fund, the Shuaa Hospitality Fund I in July 2008 which raised another $200 million. The final closing of the Shuaa Saudi Hospitality Fund will be held as soon as remaining commitments are fin-alised after the summer holidays interruption."

Goal

Shuaa Saudi Hospitality Fund I is managed by Shuaa Capital Saudi Arabia. Its goal is to acquire or develop five-star and budget hotels in the Kingdom of Saudi Arabia. In addition, it will own 20 per cent of a new hotel management company to be incorporated in the Kingdom by Rotana, the leading Pan-Arab hotel management company. This new company will operate and manage the Fund's hotel properties on an exclusive basis. Saudi Arabia is experiencing a sustained boom in business and leisure travel and the Shuaa Saudi Hospitality Fund is in an excellent position to benefit from that.