Saudi Arabia: Baheej Tourism Development Company, a joint venture between ASFAR, the Saudi tourism investment company owned by PIF, and the Tamimi-AWN Alliance, has signed an agreement with operator Kerten Hospitality for its Cloud7 brand in Yanbu.
Baheej is a development and destination management company established in September 2023 with the aim of developing destinations across the Kingdom of Saudi Arabia.
ASFAR, the Saudi tourism investment company, is a fully-owned subsidiary of the Public Investment Fund which officially launched in July 2023.
The Tamimi-AWN Alliance brings together two Saudi companies – Tamimi Global Company Ltd., (TAFGA) and AWN Enterprises – to develop and operate tourism destinations in Saudi Arabia.
Kerten Hospitality has been selected to manage Baheej’s hotel in Yanbu under the premium Cloud7 brand. Consultancy PKF hospitality group conducted the feasibility study and performed the operator search.
Cloud7 Yanbu is expected to offer a range of facilities including restaurants and business hubs, as well as a rooftop infinity pool. It is located on Al-Nawras Island.
Stefan Catic, head of operator search at PKF hospitality, said: “Finding the right operator for projects characterised by such uniqueness and complexity remains a significant challenge in the market and is crucial for success. Kerten has demonstrated an ability to leverage this complexity as an asset, deviating from the standardisation commonly seen in larger hotel groups. This factor is often overlooked, which can lead to suboptimal outcomes and reduced profitability for both individual hospitality projects and larger developments as a whole. This is why spending a bit more time on the operator selection process is crucial.”
Stefano Lopez, tourism projects director of Baheej, said: “Thanks go to Nils Heckscher an Stefan Catic and their team, your input and the advice that the PKF hospitality group brought to the conversation were determining for the project’s strategy and feasibility analysis. We look forward to more exciting announcements to come.”
Fahad bin Mushayt, CEO of ASFAR, added: “Baheej’s collaboration with Kerten Hospitality underlines our core principle: empowering partners and subsidiaries through our expansive network. ASFAR is committed to cultivating alliances and co-investing with private sector entities, both local and global, to accelerate the advancement of Saudi Arabia’s tourism sector and enrich communities in promising cities across the Kingdom in alignment with Vision 2030.”
Marloes Knippenberg, CEO of Kerten Hospitality, said: “We are honoured to partner with Baheej Group on this exciting venture, which exemplifies our shared goal of delivering exceptional hospitality and contributing to the growth and development of Yanbu’s tourism sector.
“With a portfolio that spans bespoke hotels, food and beverage brands, and a strong emphasis on community engagement initiatives, at Kerten Hospitality we believe in creating spaces that inspire and enrich the lives of our guests,” she said.
