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Fit for a king: the Saudi palaces set to become hotels

Article-Fit for a king: the Saudi palaces set to become hotels

Saudi Arabia: A collection of iconic historic palaces will become ultra-luxury hotels under the Boutique Group.

From the coastal Red Sea Project to the urban Nobu hotel Riyadh, Saudi Arabia is dramatically growing its hospitality and hotel sectors.

Backed by His Royal Highness Crown Prince Mohammed bin Salman, Saudi has launched a new, homegrown hospitality brand which will transform a selection of historic palaces into ultra-luxury hotels.

The firm, named Boutique Group, was unveiled on Thursday 20 January by Saudi’s Crown Prince in a statement from the Kingdom’s Public Investment Fund (PIF).

In the initial phase, Boutique Group will develop and manage three palaces throughout Saudi Arabia: Al Hamra Palace in Jeddah, Red Palace in Riyadh, and Tuwaiq Palace in Riyadh. Each of the projects will be carried out in collaboration with private sector firms.

Located in Jeddah, Al Hamra Palace will consist of 77 guestrooms, 33 luxury palace suites, and 44 opulent villas. In Riyadh, Red Palace will offer 46 luxury suites and 25 luxury guestrooms, while Tuwaiq Palace will provide a total of 96 rooms, together with 40 luxury palace suites and 56 luxury villas.


By merging Saudi Arabia’s rich culture and heritage with an array of modern-day amenities, Boutique Group are seeking to offer guests with a unique and exclusive hospitality experience.

“The group will enhance the Kingdom’s already unique tourism offerings, strengthening Saudi Arabia’s position as a leading regional and international tourism and cultural destination and contributing to Saudi Vision 2030,” H.E. Yasir Al-Rumayyan, Governor of PIF said.

As well as offering extravagant accommodations, the properties by Boutique Group will also feature a selection of fine-dining establishments, in addition to cultural and wellness offerings.



Saudi Arabia, currently the world’s largest exporter of oil, has ambitious plans to increase its international and domestic tourism sector significantly over the coming years.

A key aim of Vision 2030, the Kingdom is projecting the tourism sector to constitute 10% of its gross domestic product by 2030. This target is in line with Saudi’s efforts to diversify its economy and reduce its reliance on the oil industry.

“His Royal Highness the Crown Prince’s launch of the Boutique Group underlines PIF’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,” Al-Rumayyan commented.

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