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.