Hotel101 And Horizon Group Form Joint Venture To Develop 10,000 Rooms In Saudi Arabia

Hotel101 Global has embarked on a major expansion into the Kingdom of Saudi Arabia through a joint venture partnership agreement with Horizon Group, marking a significant step in the hospitality sector. This collaboration aims to develop approximately 10,000 rooms across the kingdom, contributing to a project value of around US$2.5 billion

The expansion plan has already outlined five initial locations for Hotel101 projects, starting with Madinah, followed by Riyadh, Jeddah, Abha, and AlUla. This decision reflects a keen understanding of the market's needs and the strategic importance of these cities in Saudi Arabia's tourism and economic landscape. Hotel101's innovative "one room" hotel chain concept, known for offering identical, standardized hotel rooms globally, is set to make a significant impact in the region. This approach promises consistency and efficiency, especially appealing to the value segment of the market, where customers seek reliable experiences.

Horizon Group, a leading Saudi-headquartered investment company, brings deep market expertise and strong local connections to the partnership. This collaboration combines Hotel 101's efficient HappyRoom concept and condo-hotel funding model with Horizon's insights and relationships in Saudi Arabia. The synergy between the two partners is expected to foster rapid development and growth of the Hotel101 brand within the kingdom.

"We are inspired by the leaders of Saudi Arabia and their sheer determination and will power to make things happen, as such, we are confident in the plans they have laid out for the region and we believe the Hotel101 concept will be able to make a significant contribution in terms of room keys to complement the 2030 Vision for the Kingdom, and to form part of our global vision of 1 million Hotel101 rooms worldwide," stated Edgar "Injap" Sia II, Founder of Hotel101 Global.

The agreement signing ceremony in Medina was attended by prominent figures from both organizations, including Hotel101 Global CEO Hannah Yulo-Luccini and Horizon Group CEO Abdulrahman Sharbatly. Notable attendees were Edgar "Injap" Sia II, DoubleDragon Corporation Chairman and Hotel101 Founder, Khaled Sharbatly, Chairman of Horizon Group, and other board members from both sides.

"We feel very fortunate to have found the right local partners to rapidly expand the Hotel101 brand in the Kingdom of Saudi Arabia, which is one of the 25 countries we have identified for the initial expansion of Hotel101. We see tremendous opportunities in the Kingdom of Saudi Arabia given the high growth in tourism both domestic and international. We believe Saudi Arabia will be one of the most exciting markets for Hotel101 globally," remarked Hotel101 CEO Hannah Yulo-Luccini.

The Saudi market presents strategic opportunities for Hotel101, aiming to deliver a predictable and standardised hotel offering with an average of 500 rooms per site to meet the kingdom's growing demands. Saudi Arabia's robust tourism sector, which saw 27 million international and 79 million domestic tourists in 2023, breaking the 100 million visitor mark with a total spend of USD 67 billion, underscores the potential for extensive growth in hospitality and related services.

Horizon Group, led by the Sharbatly brothers and Wael Daqal, invests in industries aligned with Saudi Arabia's Vision 2030, focusing on hospitality and manufacturing. The partnership with Horizon underscores Hotel101's commitment to contributing to the kingdom's ambitious tourism goals and expanding its global footprint in the hospitality sector.