Saudi Arabia on Thursday launched a new luxury hospitality company to turn palaces into luxurious hotels.
According to a statement from the kingdom’s Public Investment Fund (PIF), Boutique Group will develop Jeddah’s Al Hamra Palace, Riyadh’s Tuwaiq Palace, and Red Palace. There will be 244 rooms, suites, and villas at the sites.
As part of plans to diversify the economy, the world’s largest oil exporter aims to increase tourism to 10% of gross domestic product by 2030.
The development of three palaces would be the first phase, followed by other “high-end experiences” such as restaurants and spas.
PIF Governor Yasir al-Rumayyan said the launch underlines the $480 billion sovereign wealth fund’s “mandate to unlock the capabilities of promising sectors in Saudi Arabia that can help drive the diversification of the economy and contribute to non-oil GDP growth.”