Burj Rafal

First JW Marriott to launch in Saudi Arabia after re-brand [Construction Report]

Before the end of Q1 2020, Riyadh’s Burj Rafal Hotel will be re-branded as a JW Marriott, marking the brand’s debut in the Kingdom. We find out more about this landmark deal. An iconic property comes under new management Riyad REIT (real estate investment trust) recently announced the signing of a contract with Marriott International which will see the Burj Rafal Hotel in Riyadh be re-branded as a JW Marriott property before Q1 2020 runs out. Until the American chain officially takes over, the hotel will do business as usual. After this, the property will undergo renovation before re-opening as Saudi Arabia’s first-ever JW-branded hotel. Abdul Aziz Al-Mousa, Riyad REIT fund manager, said: “We are excited to work with Marriott International to operate Burj Rafal Hotel — the tallest operational building in Riyadh. Marriott International will take over the operations of the hotel in Q1 2020 and will undergo an improvement plan during the year, which includes the introduction of new dining concepts such as Kahwet Al-Mandaloun and JW Grill.” Overhauling the rooms as well as adding extra dining venues will bring the hotel in line with JW Marriott’s brand standards and ensure the property will be the success both Riyad REIT and Marriott is hoping for. “The combination of one of the largest hotel operator’s luxury brands (JW Marriott) in a flagship property with new lifestyle dining options achieves our objective of positioning a destination in the northern growth corridor of Riyadh,” Mr Al-Mousa went on to say. “Riyad REIT has been a proponent of the Kingdom’s tourism drive and expanded business potential and has been one of the only REITs with a strong focus on hospitality.” Re-vamping a Riyadh landmark As is befitting for a JW Marriott, the hotel will be in the city’s highest skyscraper. The 64-story tower is also home to residences and the Saudi Telecom Company’s leadership academy. In the future, Riyadh’s new JW will be part of the Capital Gate Community, a development strategically set between King Abdullah Financial District and Avenues Mall, which is slated to become KSA’s largest retail centre. Jerome Briet, chief development officer, Middle East and Africa, Marriott International, said: “We are delighted to collaborate with Riyad Capital on this landmark project. Saudi Arabia remains an important growth market for the company, and we continue to see opportunities to further diversify our footprint in the Kingdom.” “We are also seeing an increasing demand for conversion deals in the country, which is a strong reflection of Marriott’s powerful network, compelling brand portfolio, loyal customer base and commitment to deliver value for our owners,” Mr Briet concluded.

Saudi Arabia · 6 Mar 2020

Kempinski replaced as hotel operator at flagship Riyadh tower

Riyad REIT, owner of the 70-storey Burj Rafal skyscraper close to the King Abdullah Financial District, has removed German hotel operator Kempinski as the operator of the tower's 349-room hotel. In a filing posted on the Saudi stock exchange on Monday, the real estate fund, which is managed by Riyad Capital, said that it had decided “to discontinue Kempinski’s management of the Burj Rafal Hotel”. It said the move was taken "to protect the interests of unitholders of the fund”. It said that the hotel would continue to temporarily operate as the Burj Rafal Hotel and that this was not expected to have any impact on the hotel's income, but that the hotel was being positioned “to capture the increase in business activities expected to emerge from Vision 2030 initiatives, the opening of King Abdullah Financial District, and the G20 Summit being held in Riyadh”. The G20 summit is due to be held in Riyadh in November next year. Riyad REIT is also planning to make investments in the hotel's food and beverage offering, it said, targeting “reputable and specialised brands”, as well as utilising around 3,000 square metres of commercial space within the hotel. It did not respond to a request from Zawya as to whether a new operator will be brought in to manage the hotel. The Burj Rafal Kempinski hotel opened in 2015 on completion of the tower, which was developed by Riyadh-based Rafal Real Estate and built by Dubai Contracting Company. A spokesman for Kempinski Hotels confirmed in an emailed comment to Zawya that it no longer managed the property. “We regret that this is the result of a dispute between Kempinski Hotels and the owner of the hotel, which is now subject to confidential dispute resolution proceedings, initiated by Kempinski,” the spokesman added. He said that apart from the hotel's general manager, all staff at the hotel were employed directly by the hotel owner, not by Kempinski. At the end of March, Riyad REIT announced results for 2018 which showed the company earned net income of almost 64.2 million Saudi riyals on total income of 149.1 million riyals. However, like many other REITs in the region, its share price trades at a discount to its net asset value. A factsheet on the REIT's performance published in April showed that the REIT had a net asset value per share of 9.94 riyals at the end of March, when its share price traded at 7.67 riyals. On Wednesday, Riyad REIT’s share price closed at 7.50 riyals. (Reporting by Michael Fahy; Editing by Mily Chakrabarty) (michael.fahy@refinitiv.com) Our Standards: The Thomson Reuters Trust Principles

Saudi Arabia · 15 May 2019

Opened in January 2014, this unique and glorious vertical residential and self-sustained community is a landmark of 70 floors constructed on an exclusive 20,000sqm plot. It is the nearest luxurious vertical property to the KKIA and has the advantage of alternate accessibility. The community is equipped with state-of-the-art facilities and fully integrated systems aligned with Kempinski Hotel – one of the most renowned luxurious European hotels in the world.

16 Jun 2018

عوائد «برج رافال» تتجاوز الدراسات

مع قرب اكتمال مشروع ضاحية برج رافال (أعلى مبنى سكني في مدينة الرياض) ارتفعت القيمة السوقية لصندوق برج رافال إلى 47% منذ التأسيس حسب التقييم الدوري المعد من الرياض المالية، بالتعاون مع مثمنين مستقلين. وأشار عادل العتيق مدير إدارة الأصول في «الرياض المالية» إلى أن العوائد المالية المحققة من المشروع كانت أعلى من الدراسات والتوقعات المعدة مسبقاً؛ وإن ارتفاع الطلب على المنتج السكني الجديد ساهم بدوره في ارتفاع قيمة الوحدات في الصندوق. إضافة إلى اقتراب افتتاح الفندق الفاخر بتصنيف 5 نجوم العائدة ملكيته لشركة برج رافال للتطوير العقاري نهاية العام الجاري والذي ستقوم كمبينسكي بتشغيله ليحمل اسم – فندق برج رافال كمبينسكي – وهذه العوامل دلالة على نجاح المشروع. وأوضح العتيق أن الرياض المالية تتطلع لطرح منتجات عقارية جديدة خلال الفترة المقبلة تكون موائمة من ناحية المخاطر والعوائد لشرائح مختلفة من المستثمرين. يشار إلى أن صندوق الرياض العقاري برج رافال يمتلك حصة قدرها 53 % من رأسمال شركة برج رافال للتطوير العقاري «مساهمة مغلقة». كما يمكن للمستثمرين تداول الوحدات في الصندوق من خلال تسجيل طلبات البيع والشراء عن طريق المراكز الاستثمارية للرياض المالية المنتشرة في أرجاء المملكة.

29 Aug 2013