Asas Capital  /  Asas Makkah Hospitality Fund

Asas Makkah Hospitality Fund

A Cayman Islands Exempted Limited Partnership.

1b-makkahInvestment Objective

To provide investors with an annual income and long-term capital appreciation, by developing and operating two 4-star hotel properties in the Holy city of Makkah, Kingdom of Saudi Arabia

Investment Opportunity

Asas Capital Partners is in the process of developing two four star hotels in Makkah with an aggregate capacity of ~630 rooms with 20-year inflation free land lease. Hotels to be branded Park Regis Makkah, managed by Stay Well Hospitality.

Investment Rationale

Steady Makkah Hospitality Market:

Makkah market is considered to be exceptional with indefinite demand against evident supply constraints. The industry enjoys a recession proof stability and a steady sustainable growth model from ~1.6 million Muslim population around the world.

 

Government Infrastructure boost:

The government has initiated a massive expansion of the Grand Mosque and other major infrastructure projects which include King Abdul Aziz international airport expansion, Haramain high speed rail project, Makkah metro project among others.

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Significant Growth Potential:

With the Masjid Al Haram’s capacity expansion, the government plans to increase the number of visitors from ~7.99 million to ~15 million by 2020.

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Strategic Location:

The management team were able to secure the lease of two plots of lands at a strategic location within 1.8 km from the Grand Mosque for 20 years.

 

Attractive business opportunity:

There is a definite demand supply gap in the branded four star category (only ~11%) hotels.

 

Excellent Management Team:

The investment would be able to leverage from an International Operator expertise with strong local knowledge of the co-sponsors, who have a combined experience of over 50 years in the tourism business of Hajj & Umrah.


Location Map

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