More details on luxe eco-brand expansion from ENVI Lodges

UNITED ARAB EMIRATES — With the glamping market predicted to be worth $3.9 billion by 2027, with a 17.5% CAGR, ENVI Lodges is emerging from the UAE and has announced a new deal with Blue Ocean Capital France (BOCF) to first develop four ecolodges and then eye developments across Europe in markets including Portugal, Spain, Italy and Greece. ENVI Lodges leadership did not divulge any terms of the deal or how much BOCF is investing.

The deal, which leverages a funding strategy that will combine equity, debt, and government support for impact investments, will kick-start ENVI’s European growth plans, with the new ecolodges targeting mountain, beach and farm locations over the next five years. Every ecolodge is built around three key pillars: the protection of wildlife, the mindful use of natural resources and supporting local communities.

The four ecolodges will highlight BOCF’s expertise in responsible urban development, hospitality and real estate, and capitalize on the region’s ecotourism sector, which is set to contribute a 38% share of the global value by 2027, with a report stating France, Germany and the UK will account for 50% of that market.

Chris Nader, ENVI Lodges

Co-founded in September 2021 by hospitality veterans Chris Nader and Noelle Homsy, ENVI Lodges focuses on low cost, quick turnaround (one year versus three to four minimum for traditional hotels), and market fit/demand. The first to open will be ENVI Al Nakheel in Saudi Arabia during the second half of this year.

Afyaa Holding has partnered with ENVI Lodges to open and operate a circuit of three distinct ecolodges in Al Ahsa: the largest governorate of Saudi Arabia and one of the focus destinations of the National Tourism Strategy of the Kingdom. Each lodge will offer a distinct experience, immersed in the different natural landscapes of Al Ahsa. ENVI Al Nakheel, located on a privately owned date farm and will offer 25 biophilic pods with private plunge pools.

ENVI Lodges has signed a master agreement with the Mansour Alsanooni Group to operate multiple ecolodges across Saudi Arabia. Mansour Alsanooni Group is owned by Mansour Alsanooni, a prominent figure in the Kingdom’s entertainment industry. The lodges will comprise modular pods conceived by Alsanooni himself.

ENVI Lodges and Al Rasim Hotels & Resorts will develop a waterfront ecolodge project on Saudi Arabia’s Red Sea coast featuring 40 pods, a restaurant, beach club, private pools, an experience hub, a wellness sanctuary, and a kids club.

There are also two deals in Oman, one in Zanzibar and another in Costa Rica. Leadership added that further discussions are underway for developments in The Canary Islands, the U.K., Europe and Asia.

Hotel Investment Today asked Nader for more deal details:

Hotel Investment Today (HIT): How many units per lodge?

Chris Nader: Between 30 and 60, depending on the size of the plot.

HIT: Will they be stand-alone tents or pods?

Our investors expect a payback period of seven to eight years. If you add a branded residential component to it, the period is reduced to four to five years.

Chris Nader

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Nader: All our lodges have stand-alone pods/tents. That’s the core of our brand. Amenities are similar to those found in resorts, but vary according to location, with anchor experiences including adventure, wellness, agri-tourism, cultural or environmental.

HIT: What are the development costs?

Nader: In France we expect a cost per sqm to vary from €2,500 to €4,000 depending on the positioning/ring category of the lodge, which is our internal rating system.

HIT: What is the projected ROI for investors?

Nader: Our investors expect a payback period of seven to eight years. If you add a branded residential component to it, the period is reduced to four to five years.

HIT: Are there other investors in the newly announced deal with BOCF?

Nader: BOCF will invite other investors to develop the lodges. We are currently in talks with family offices and real estate companies in France who have a strong ESG angle and are interested in an Impact investment.

HIT: What are your sources of debt?

Nader: Some state financing institutions provide special green debt for impact projects, plus government subsidies.

HIT: When will the newly announced projects in France open?

Nader: We are hoping to open the first project in 2026.

HIT: What is the projected room rate?

Nader: Rate is subject to location – our lodges have 3 ring categories that define the luxury level of the lodge, the rate of ring 1 is around €400, ring 2 around €700, ring 3 above €1,000.

HIT: What are the longer-term growth expectations in other European markets?

Nader: We are in talks for projects in Greece and Italy and are interested in Spain and Portugal. We are keen to also develop in other European markets, particularly for mountain/adventure and agri-tourism/farm experiences.