By Mario Marroquin
Saudi Arabia’s Public Investment Fund (PIF) and London-based
private real estate firm Cain International are continuing their investments in
luxury hospitality, teaming on a $900 million investment in Swiss hospitality
brand Aman Group that values the group at $3 billion .
For PIF, the investment in Aman Group is the second investment
in luxury hospitality in 2022 after it and the Saudi Arabian crown launched
Boutique Group in January. Meanwhile, the $900 million deal with Cain
Investments, PIF and Aman extends the former’s relationship with Russian
developer and Aman Chairman and CEO Vladislav Doronin.
Aman Group manages luxury hotels, villas, yachts, boats and glamping
across 20 countries, and has nine hospitality projects under development. However,
Cain International said “affiliates of Aman own or part-own 16 of the 34
hotels, although such ownership interests were not part of this transaction,” the
company said in a statement.
“My long-term strategic vision has been to continue to grow
the Aman brand in key markets, all with Aman Branded Residences, as well as
creating an ultra-luxury ecosystem which offers the complete Aman lifestyle,”
Doronin said. “We have set the foundation over the last eight years,
celebrating the brand’s DNA while continuing our growth in global cities and
remote destinations.”
Doronin leads two others hospitality brands active in South
Florida (OKO Group), Montenegro, Tokyo and Saudi Arabia (Janu). Cain International
is an investor in Doronin’s OKO Group, which is the developer behind two
condominiums towers and an office tower tenanted by CI Financial and Microsoft
in Miami.
Resources from the $900 million deal will enhance Aman’s
existing portfolio, drive the construction of properties branded under both
Janu and Aman brands, and fund the acquisition and development of additional
sites, according to Cain. Aman’s development pipeline includes luxury
hospitality properties in the United States, Japan, Mexico, South Korea, Saudi
Arabia and across Europe.
“As the hospitality landscape continues to evolve, we expect
to see a growing desire for travelers and investors alike to prioritize
experiences supported by preeminent brands like Aman,” Cain International CEO
and cofounder Jonathan Goldstein said. “This investment represents a unique
opportunity to further enhance this portfolio of unrivalled destinations.”
Cain International tapped Aman to operate the $2 billion Beverly
Hills Hotel at the former Robinsons-May property in Los Angeles in June.
PIF’s first play in hospitality in 2022, Boutique Group,
will reposition three palaces in Jeddah and Riyadh as luxury hotels in the
coming years. The $430 billion AUM sovereign wealth fund has also backed tourism
development via Cruise Saudi, which aims to develop cruise terminals in Jeddah
and along the Red Sea.