Abraaj Capital and Ithmaar Bank create JV fund for landmark hospitality project

The joint venture will be capitalized with US$500 million of equity to be partially funded by Abraaj and Ithmaar and will be domiciled in the Kingdom of Bahrain.

The Serai Group is set to structure three distinct brands; Caravan Serai, positioned as a 'silk-road' experience for the mass market segment; Serai Hotels offering seamless, uncluttered hospitality and services catering to the demands of the business traveller; Grand Serai offering a premium Arabian and Middle Eastern experience for the high-end guest segment.

Across all three categories The Serai Group will distinguish its properties on an architectural and functional level, configured to evoke the cultural aura of the Middle East. Distinctive design elements drawing from and emphasizing the rich and diverse cultural heritage of each of the countries of the Middle East and other Islamic countries, will form an integral part of the Serai experience.

The group's vision is led by a seasoned management team with over 85 years of combined regional hospitality experience. Sami Zoghbi, the group's Chief Executive Officer, has over 43 years of experience in the hospitality industry during which he served as the Regional Managing Director of the Middle East and West Asia at Le Meridien, and as President of Africa, India, and the Middle East for Sheraton.

Zoghbi commented on the launch of the Serai Group by saying : "The time has come for the international traveller to experience Arabian hospitality at a level of quality and service provided by leading international hotel operators."

"The Serai Group's properties and service model will be designed to provide all travellers with a genuine sense of Middle Eastern and Islamic-style living in tandem with the full amenities and technological facilities that are expected from a world-class hotel operator".

Arif Naqvi, CEO & Executive Vice Chairman of Abraaj Capital, said: "We are delighted to partner with Ithmaar Bank to announce this initiative to create a different hospitality brand within a large and growing marketplace.

"With tourism growth in the Middle East anticipated to outpace the global growth by over 20 per cent, and with intraregional tourism expected to double in the next 15 years, we believe that there is growing market for culturally sensitive Middle Eastern themed hotels with business & leisure as key focus areas.

"The improved regional tourism infrastructure, higher disposable per capita income and regional tourists shifting focus from Europe and USA to the Middle East are providing the required impetus to the hotel industry. While there are over 60,000 new rooms under construction today, Serai Hotels & Resorts is positioned as a unique product offering in an increasingly competitive market" he added.

Khalid Abdulla-Janahi, Chairman of Ithmaar Bank, said: "We are excited to partner again with Abraaj Capital as this is our second joint-endeavour within a short span of time.

"Current market conditions and dynamics present a unique opportunity as there is a clear gap in the current marketplace for Middle Eastern themed hotels. The Serai Group will address this gap and target the growing tourism market by offering a truly unique experience.

"The Group's properties will be designed to embrace local and Islamic influences in order to deliver an authentic traditional and cultural experience, appealing to both regional and western guests alike."

In addition to Sami Zoghbi, Serai's core team also includes Mark Zuheir Neem as Chief Operating Officer, and Dr. Fawaz Sabri as Chief Financial Officer.

Neem has over 25 years of experience in the hospitality and real estate/construction industries and an extensive background in the design, construction, and operations of hotel properties. Dr. Sabri has over 17 years of experience in various finance, structuring, fund raising, strategic business management, and advisory roles within the real estate and construction industries.

The Serai Group's first project will be a mixed-use development located in the prime commercial district of Seef within the Kingdom of Bahrain.