Regal Hotels, Saudi investors announce JV for 100 hotels

Hong Kong-based Regal Hotels Group and its Cosmopolitan International Holdings investment arm have signed a deal with the Ministry of Investment of Saudi Arabia to raise $5 billion for an asset management platform to acquire, own, develop and manage sustainable hotels, serviced apartments and innovation centers around the world.

Regal Hotels Vice Chairman Poman Lo said they want to establish 100 hotels across the globe by 2035, including 50 in the Middle East (30 in Saudi Arabia). Regal currently owns and operates 19 hotels across Hong Kong, mainland China and Europe. The expansion under Regal’s iclub brand will target entrepreneurs and corporate travelers who prefer sustainable accommodations. It is also meant to foster tourism, innovation, and technology exchanges between China, including Hong Kong, and the Kingdom of Saudi Arabia.

Saudi Arabia’s Ministry of Investment will help secure funds for the projects, and Regal is also open to accepting capital from investors in Mainland China and Hong Kong.

Furthermore, Regal Hotels and Cosmopolitan will evaluate opportunities to invest in an asset management platform through joint ventures, investment funds, and/or publicly listed companies in the Kingdom of Saudi Arabia and/or Hong Kong.

As Western investment in China continues to tighten, the move further signals increased cooperation between Chinese and Middle Eastern countries, especially Saudi Arabia, to expand opportunities outside their respective borders.

In November, China and Saudi Arabia signed a local-currency swap agreement worth US$7 billion. Chinese President Xi Jinping also visited the country in 2022 for a summit where the two countries signed agreements-in-principle valued at US$50 billion.

Regal Hotels and Cosmopolitan International are both controlled by mogul Lo Yuk Sui. He is the second son of the late Lo Ying-shek, who founded Hong Kong real estate giant Great Eagle Holdings. Lo Yuk Sui’s younger brother, Vincent Lo, is the billionaire founder and chairman of property company Shui On group.