Market & Financial Feasibility Study: Red Sea Rivera Resort
Prepared for Project Stakeholders & Financial Partners
July 2025
Table of Contents
Introduction: Project Background & Objectives
This Market and Financial Feasibility Study has been prepared to support the debt financing application for the "Red Sea Rivera Resort" (the "Project"). The study provides an independent and comprehensive assessment of the project's viability, grounded in a thorough analysis of the Kingdom of Saudi Arabia's hospitality market, a detailed site evaluation, and rigorous financial modeling.
The Project involves the development of a 150-key ultra-luxury "boho-chic" resort on a leased private island located north of Jeddah, Saudi Arabia. The development scope includes 150 guest units (75 Small Cabanas, 60 Large Cabanas, 15 Villas) and a curated collection of amenities, including wellness facilities, destination restaurants, a waterfront deck, and innovative floating beach pods. The total required capital expenditure is projected at $120 million.
The objective of this study is to analyze existing and future hospitality trends to validate the proposed concept and to assess the financial viability of the Project for potential lenders and investment partners.
Project Snapshot
150 Keys
Ultra-luxury "boho-chic" resort
Private Island, North of Jeddah
Strategic Red Sea location
$120 Million CAPEX
Total capital expenditure
Section 1
Hospitality Market Assessment
1.1 Factors Influencing the Sector: Jeddah & Vision 2030
KSA Inbound Tourism Growth (2019-2024)
The Kingdom has seen explosive growth in tourism arrivals, with 2023 numbers surpassing pre-pandemic levels by 56%. Jeddah, as a primary gateway, is a core beneficiary of this trend.
Source: KSA Ministry of Tourism, 2024
Inbound Tourism by Purpose (2023)
While leisure tourism is the fastest-growing segment, religious travel remains the primary driver for international visitors, for which Jeddah is a key gateway.
Source: KSA Ministry of Tourism, 2024
1.2 An Unprecedented Market Opportunity
The resort is strategically aligned with the visionary leadership of His Royal Highness Crown Prince Mohammed bin Salman, the architect of Saudi Vision 2030, positioning us to benefit from the Kingdom's remarkable tourism transformation and the series of prestigious global mega-events on the horizon.
Upcoming Mega Events
- Saudi Arabia 2034 FIFA World Cup: The world's most prestigious sporting event, expected to attract over 5 million visitors.
- Expo 2030 Riyadh: Global innovation showcase expected to welcome 40 million visitors.
- Asian Winter Games 2029: Historic first winter games in the Middle East, showcasing NEOM's futuristic capabilities.
- AFC Asian Cup 2027: Asia's premier football championship bringing together 24 nations.
Annual Sporting Events
- Formula 1 Grand Prix
- Saudi Cup horse racing
- Dakar Rally
- Premier golf tournaments
Source: Investment Proposal: The Red Sea Riviera Resort
1.3 Demand Trends & Target Audience
The resort is designed to attract a specific psychographic profile rather than broad demographics.
Primary Market - The Global Creative Class & Affluent Experientialists:
This cohort of high-net-worth individuals from the GCC, Europe, and North America prioritizes unique experiences, design, wellness, and sustainability over traditional luxury. They are digitally native and seek destinations that offer inspiration and connection.
Secondary Market - High-End "Tribe" Travel:
This includes groups of friends and extended families seeking celebratory gatherings and sophisticated group getaways. The resort's multi-bedroom villas and communal spaces are designed specifically to cater to this segment.
Target Audience Priorities
Source: Internal analysis of luxury travel trends
1.4 Jeddah Hospitality Market: Performance and Opportunity
Jeddah is at the forefront of the Kingdom's leisure transformation, strategically pivoting from a corporate and religious gateway to a vibrant cultural and entertainment destination. While the influx of new supply has created a more competitive baseline market, it has also demonstrated an exceptional capacity for premium performance during major events.
The 2025 Formula 1 Grand Prix, for example, propelled Jeddah's hotel occupancy to a record high for April at 82.5%, with daily ADRs peaking at over SAR 1,604. Similarly, the Spanish Super Cup in January 2025 drove occupancy to 70.5%. This proves a high ceiling for performance and pricing power for properties that can capitalize on peak demand.
Table 1: Jeddah Hospitality Market - Quarterly & Event-Driven Key Performance Indicators (2024-2025)
| Period | Occupancy | ADR (SAR) | RevPAR (SAR) | Key Event/Driver & Notes | Source |
|---|---|---|---|---|---|
| 2024 | |||||
| Q1 2024 | 60.9% | 494 | - | Performance driven by the Formula 1 Grand Prix in March (66.3% occupancy). | |
| Q2 2024 | 55.4% | 725.5 | - | Data for KSA, which includes Jeddah. | |
| Q3 2024 | 46.1% (KSA-wide) | 354 | - | Jeddah-specific occupancy grew 4.1 pp YoY. Occupancy for Makkah region, which includes Jeddah. | |
| Q4 2024 | 56.0% (KSA-wide) | 440 | - | KSA-wide occupancy saw a slight decline in December due to new supply. | |
| 2025 | |||||
| Q1 2025 | 63.0% | 477 | - | Includes the Spanish Super Cup in January. Jeddah occupancy was 64.5% YTD March. | |
| January 2025 | 70.5% | 630.94 | 444.84 | Spanish Super Cup | |
| April 2025 | 82.5% | 833.79 | 688.23 | Formula 1 Grand Prix (Record April Occupancy) |
Source: Investment Memorandum, Table 1: Jeddah Hospitality Market - Quarterly & Event-Driven Key Performance Indicators (2024-2025)
1.5 Project Location: A Strategic Red Sea Gateway
The project occupies a strategic position on the Red Sea coast, a region central to Saudi Arabia's tourism and development ambitions. This location serves as an ideal gateway for both international visitors arriving via Jeddah and the growing domestic market exploring the Kingdom's western coastline.
The resort is poised to capitalize on major infrastructure investments and the increasing global focus on the Red Sea as a premier luxury destination.
1.6 Competitor Identification
The competitive set is defined as the leading ultra-luxury resorts on the Red Sea coast. The following properties form the primary benchmark for positioning, pricing, and service standards.
| # | Property | Brand Tier | Location | Key Count |
|---|---|---|---|---|
| Red Sea Rivera Resort (Proposed) | Ultra-Luxury | Private Island, North of Jeddah | 150 | |
| 1 | Nujuma, a Ritz-Carlton Reserve | Ultra-Luxury (Reserve) | Ummahat Islands | 63 |
| 2 | Shebara Resort | Ultra-Luxury | Sheybarah Island | 73 |
| 3 | The St. Regis Red Sea Resort | Ultra-Luxury | Ummahat Islands | 90 |
Source: Public Filings, Market Research, 2024
1.7 Competitor Profile: Nujuma
| Location | Ummahat Islands, Red Sea |
| Brand / Affiliation | Ritz-Carlton Reserve (Marriott) |
| Opening Date | 2024 |
| Category | Ultra-Luxury (Reserve) |
| Number of Keys | 63 Villas |
| F&B Outlets | 4 unique dining experiences |
| Facilities | Nujuma Spa, Dive Center, Conservation House |
| ADR (Indicative) | $2,640+ |
Source: Publicly available data and market research, Q2 2025
1.8 Competitor Profile: Shebara
| Location | Sheybarah Island, Red Sea |
| Brand / Affiliation | Red Sea Global (Independent) |
| Opening Date | 2024 |
| Category | Ultra-Luxury |
| Number of Keys | 73 Villas (overwater & beach) |
| F&B Outlets | Specialty restaurants, beach club |
| Facilities | Spa, fitness center, dive center, infinity pools |
| ADR (Indicative) | $2,400+ |
Source: Publicly available data and market research, Q2 2025
Enhanced Competitor Analysis
In-depth performance indicators and broader market context.
1.9 Competitive Landscape & Market Positioning
The Red Sea Riviera Resort is strategically positioned to offer a compelling value proposition within the ultra-luxury segment. While direct competitors like Nujuma and Shebara offer exceptional experiences, their remote locations present a logistical barrier for many travelers. Our resort fills this gap by combining island exclusivity with unparalleled accessibility.
Key Differentiators
- Accessibility: Proximity to Jeddah (KAIA) significantly reduces travel time and complexity.
- "Boho-Chic" Concept: Appeals to a growing segment of luxury travelers seeking authentic, experience-driven hospitality.
- Capital Efficiency: Achieves ultra-luxury standards with a disciplined CAPEX, translating to stronger financial returns.
Competitive Positioning Map
Nujuma
(Remote, Formal)
Shebara
(Remote, Modern)
St. Regis
(Accessible, Formal)
Red Sea Riviera
(Accessible, Boho-Chic)
Illustrative representation of market positioning.
1.10 Market Assessment: Ultra-Luxury Resort Supply
The Red Sea region of Saudi Arabia is undergoing a massive transformation, with a significant pipeline of ultra-luxury resorts planned and under development as part of the Red Sea Project and AMAALA, spearheaded by Red Sea Global (RSG). This indicates a rapidly growing, highly competitive market for high-end hospitality.
Key Supply Highlights:
- Overall Scale: By 2030, the Red Sea Project aims for 50 hotels with 8,000 rooms. AMAALA is set to feature 29 hotels with over 3,000 rooms. Nearly 80% of Saudi Arabia's future hotel supply is targeting the premium market.
- Recent Openings (2023-2024): The destination has already welcomed its first guests, with several notable ultra-luxury properties recently opened, including The St. Regis Red Sea Resort, Six Senses Southern Dunes, Nujuma, a Ritz-Carlton Reserve, Shebara Resort, Desert Rock Resort, and Thuwal Private Retreat.
- Upcoming Developments (2025 onwards): The pipeline is robust, with many more ultra-luxury properties announced, including those on Shura Island (e.g., Hyatt, Fairmont, InterContinental, Rosewood, Jumeirah, Faena, Raffles, Miraval, Edition, SLS), AMAALA (e.g., The Ritz-Carlton, Nammos Resort, Four Seasons, Jayasom, Rosewood, Six Senses, Equinox, Clinique La Prairie), and Laheq Island.
Source: Red Sea Global, various industry reports
1.11 Competitive Positioning & ADR Strategy
The Red Sea Riviera Resort's proposed Average Daily Rate (ADR) of $2,000-$2,500 is strategically positioned within the ultra-luxury segment, taking into account the pricing of its identified direct competitors: Nujuma ($2,640+) and Shebara ($2,400+).
Justification for Proposed ADR:
- "Boho-Chic" Concept: Appeals to a growing segment of luxury travelers who prioritize authentic, experience-driven hospitality over traditional, often more formal, luxury.
- Superior Accessibility: Proximity and ease of access from Jeddah's King Abdulaziz International Airport (KAIA) significantly reduces travel time and complexity for guests compared to more remote island resorts.
- Value Proposition: Combines island exclusivity with unparalleled accessibility and a unique experiential concept, optimizing occupancy and overall revenue.
Components of an ADR Build-Up (Conceptual Framework):
- Market Positioning: How the resort is positioned within the overall luxury market.
- Competitor ADRs: Benchmarking against direct and indirect competitors.
- Unit Mix Premium: Adjusting rates based on the proportion of different room types.
- Inflation/Market Growth: Incorporating projected market growth and inflation rates.
- Project Penetration/Ramp-Up: Accounting for the initial ramp-up period.
Section 2
Site Analysis
2.1 Site Overview & Location
The Project is located on a pristine private island on the Red Sea coast, just north of the commercial hub of Jeddah. This location offers the perfect paradox: the serene seclusion of an island escape coupled with the practical benefits of proximity to a major urban center and international gateway. The site itself features pristine beaches and calm, turquoise waters ideal for the planned waterfront amenities.
2.2 Access & Proximity to Demand Generators
The site's primary competitive advantage is its accessibility. It is located approximately a 40-minute drive from Jeddah's King Abdulaziz International Airport (KAIA), followed by a short private boat transfer to the island. KAIA is one of the region's best-connected airports, providing direct access for international and GCC travelers. This proximity makes the resort an ideal destination for both long-haul vacations and short weekend escapes, a significant advantage over competitors that require additional domestic flights and lengthy transfers.
2.3 Site Plan & Concept
A detailed site plan illustrating the layout of the cabanas, villas, wellness facilities, waterfront deck, and back-of-house areas will be presented here. This will demonstrate the efficient use of the island's topography and the seamless integration of the resort into the natural environment.
2.4 SWOT Analysis
| Strengths | Weaknesses |
|---|---|
| • Unique, defensible 'boho-chic' concept | • Higher logistical costs associated with island operations |
| • Unparalleled accessibility via Jeddah (KAIA) | • Reliance on marine transport for all supplies and staff |
| • Strong government support (Vision 2030) | |
| • Experienced development and finance team | |
| Opportunities | Threats |
| • Capitalize on massive tourism growth under Vision 2030 | • Potential for construction delays or cost overruns |
| • Fill market gap for accessible ultra-luxury resorts | • Emergence of new, direct competition in the Jeddah coastal area |
| • Become a premier destination for high-end events and MICE | |
| • Leverage proximity to Jeddah for local demand |
Section 3
Summary of Market & Site Analysis
3.1 Gap Analysis & Strategic Opportunity
The market and site analysis identifies a clear and compelling strategic opportunity. The current ultra-luxury resort landscape in the Red Sea is defined by high-quality but remote destinations. This creates a significant gap for a development that offers a comparable level of exclusivity and experience without the associated travel burden.
The Red Sea Rivera Resort is positioned to capture this opportunity by delivering:
- An Internationally Branded, Quality Product: In a market where new, high-quality supply is in demand.
- An Experiential Concept: The 'boho-chic' theme and curated amenities appeal directly to the modern luxury traveler.
- Superior Accessibility: The location near Jeddah is a powerful differentiator that reduces friction for guests and broadens the potential market.
The Project is not merely another luxury hotel; it is a targeted solution to a defined market gap.
Market Gap & Solution
Traditional Luxury
(Remote, Formal)
Experiential Luxury
(Accessible, Boho-Chic)
Red Sea Riviera
(The Gap)
Illustrative representation of market positioning.
Section 4
Development Recommendations
4.1 Project Vision & Positioning
The vision is to create an ultra-luxury bohemian sanctuary that is a market leader in experiential hospitality. The property will be positioned in the "Ultra-Luxury" segment, competing on experience, design, and service. The branding and operational strategy will align with world-class experiential operators who have a proven track record in this specific niche.
Market Segment
4.2 Operator Strategy
The selection of the hotel operator is a critical decision. The chosen partner must possess a proven track record in the ultra-luxury segment, a powerful global distribution network, and a brand DNA that authentically embodies the resort's ethos of experiential, wellness-focused, and sustainable hospitality.
The strategy is focused on a shortlist of operators who are leaders in this specific niche:
- Prime Candidate: Aman is an ideal fit. Their brand is built on the pillars of unparalleled luxury, serene locations, and bespoke experiences, mirroring our concept.
- Market Experience: Both candidates have existing, successful properties in Saudi Arabia (e.g., AlUla), demonstrating a deep understanding of the market and an ability to deliver exceptional luxury in unique Saudi landscapes.
- Brand Alignment: A partnership with either brand would provide instant credibility and access to a loyal global following of affluent experientialists who are our primary target audience.
Operator Brand Alignment
Our Project
Target Operator
4.3 Property Sizing & Unit Mix
The proposed 150 keys provide the critical mass for a full-service resort with diverse amenities while maintaining an atmosphere of exclusivity. This size is comparable to its direct competitors (Nujuma: 63 keys, Shebara: 73 keys, St. Regis: 90 keys), positioning it appropriately within the ultra-luxury landscape.
The unit mix is designed for sophisticated yield management:
- 75 Small "Dune Cabanas" (70 m²): For couples and solo travelers.
- 60 Large "Reef Cabanas" (110 m²): For small families and longer stays.
- 15 "Rivera Beach Villas" (350 m²): For large families, groups, and VIPs.
Unit Mix Distribution (150 Keys)
Source: Project Development Plan
4.4 Critical Success Factors
The success of the Red Sea Rivera Resort hinges on the successful execution of several key strategic pillars:
- Product Differentiation: Delivering a modern, authentic 'boho-chic' product in a market where much of the existing luxury supply can be formal or dated.
- Operational Excellence: Aligning with a world-class operator that specializes in experiential luxury to ensure the service culture matches the brand promise.
- Capital Discipline: Adhering to the capital-efficient $120M budget by avoiding scope creep and focusing on design elements that enhance the guest experience.
- Leveraging Accessibility: Effectively marketing the resort's key advantage of being easily accessible from Jeddah (KAIA).
- Securing Favorable Financing: Finalizing the proposed 50/50 debt structure to optimize the project's financial returns.
Pillars of Success
Section 5
Financial & Returns Analysis
5.1 Granular Capital Expenditure (CAPEX) Forecast
The total project cost of $120 million is the result of a capital-efficient 'boho-chic' design philosophy that optimizes the Built-Up Area (BUA) and focuses on authentic, elemental luxury rather than monolithic structures. The budget is benchmarked against current localized costs for luxury hospitality construction in Saudi Arabia. The cost per key is $800,000, which is competitive for the ultra-luxury segment, especially for a private island development.
| Category | Sub-Category | Estimated Cost (USD) | % of Total | USD/Key | USD/m² GFA | Justification & Benchmarks |
|---|---|---|---|---|---|---|
| Hard Costs | $80,400,000 | 67.0% | $536,000 | $7,790 | Aligned with 60-70% range for hotel development optimized via efficient BUA design. | |
| Main Construction (Villas, BOH, etc.) | $72,000,000 | 60.0% | $480,000 | $6,976 | Based on a strategic BUA of approx. 10,300 m² at a blended rate of ~$7,000/m², reflecting the 'boho-chic' concept's focus on efficient structures. | |
| Infrastructure & Marine Works | $4,200,000 | 3.5% | $28,000 | $406 | Allocation for island-specific infrastructure (utilities, access). | |
| Specialized Amenities (Pools, Decks) | $4,200,000 | 3.5% | $28,000 | $406 | Specific allocation for high-value experiential items that drive ancillary revenue. | |
| FF&E and OS&E | $19,200,000 | 16.0% | $128,000 | $1,860 | Within the typical 8-16% allocation for luxury hotels. | |
| Guest Rooms & Public Areas FF&E | $15,200,000 | 12.7% | $101,333 | $1,472 | Sourced via operator-approved vendors to meet ultra-luxury brand standards. | |
| Operating Supplies & Equipment (OS&E) | $4,000,000 | 3.3% | $26,667 | $388 | Essential for operational launch at a high service level. | |
| Soft Costs | $9,600,000 | 8.0% | $64,000 | $930 | Consistent with industry standards of 6-10% for professional services. | |
| Design & Supervision Fees | $6,400,000 | 5.3% | $42,667 | $620 | Standard percentage-based fees for a project of this scale. | |
| Other (Legal, Permits, Project Mgmt) | $3,200,000 | 2.7% | $21,333 | $310 | Covers all necessary professional services for project delivery. | |
| Pre-Opening & Working Capital | $6,000,000 | 5.0% | $40,000 | $582 | Aligned with the 3-6% industry standard for a luxury launch. Crucial for building brand awareness and securing advance bookings. | |
| Pre-Opening Marketing & Training | $4,000,000 | 3.3% | $26,667 | $388 | Crucial for building brand awareness and securing advance bookings. | |
| Initial Working Capital | $2,000,000 | 1.7% | $13,333 | $194 | Ensures operational liquidity from day one. | |
| Contingency | $4,800,000 | 4.0% | $32,000 | $466 | A prudent allocation of 4% to mitigate construction and logistical risks. | |
| Total Project Cost | $120,000,000 | 100.0% | $800,000 | $11,628 |
Source: Investment Memorandum, Cost Consulting, Industry Benchmarks
5.2 Trading Forecast Methodology
The financial projections are derived from a bottom-up methodology based on a combination of factors to ensure a realistic and defensible forecast. See Appendix 2 for a detailed diagram.
Market Seasonality
Analysis of travel patterns in GCC and European feeder markets.
Competitor Benchmarking
Using established ADRs of competitors as a primary reference.
Project Penetration
Applying a conservative ramp-up schedule based on market position.
Realistic Financial Forecast
5.3 Revenue & Cost Assumptions
Key assumptions are benchmarked against regional ultra-luxury resort data.
- Revenue Mix (Stabilized): Rooms (63%), F&B (30%), Other (7%).
- GOP Margin (Stabilized): 39.4%, reflecting an efficient operational model.
- Total Payroll (Stabilized): 32.5% of total revenue, reflecting a "smart service" model with a staff-to-room ratio of 2.5:1.
- Island Lease: $533,000 per annum, escalating at 3% annually.
- FF&E Reserve: 4% of total revenue from Year 3 onwards.
Stabilized Revenue Mix
Source: Feasibility Model
5.4 Occupancy Build-Up & Projections
The Project is forecast to achieve stabilized performance in Year 4 of operations.
| Metric | Year 1 | Year 2 | Year 3 | Year 4 (Stabilized) |
|---|---|---|---|---|
| Occupancy Rate | 45.0% | 65.0% | 72.0% | 75.0% |
| ADR (USD) | $1,980 | $2,200 | $2,310 | $2,420 |
| RevPAR (USD) | $891 | $1,430 | $1,663 | $1,815 |
Source: Feasibility Model
Occupancy & ADR Projections
Blue bars: Occupancy (lighter), ADR (darker)
5.5 Pro-Forma Profit & Loss Statement
The following table summarizes the projected performance for the first five years of operation.
| (All figures in USD '000) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Total Operating Revenue | $48,604 | $62,123 | $71,961 | $74,119 | $76,344 |
| Gross Operating Profit (GOP) | $13,657 | $21,929 | $27,778 | $29,203 | $30,078 |
| GOP Margin | 28.1% | 35.3% | 38.6% | 39.4% | 39.4% |
| EBITDA | $15,670 | $24,455 | $29,342 | $30,641 | $31,560 |
| EBITDA Margin | 32.2% | 39.4% | 40.8% | 41.3% | 41.4% |
Source: Feasibility Model
5.6 Project Financing & Cash Flow Analysis
The project will be financed with a 50/50 debt structure. The debt service coverage ratio (DSCR) demonstrates a strong capacity to meet obligations.
Debt Assumptions
| Total Debt | $60,000,000 |
| Assumed Interest Rate | 6.0% |
| Debt Term (Years) | 15 |
| Annual Debt Service (P+I) | ~$6,200,000 |
Cash Flow Analysis (Year 4 - Stab.)
| (USD '000) | Value |
|---|---|
| EBITDA | $30,641 |
| Less: Debt Service | ($6,200) |
| Cash Flow After Debt Service | $24,441 |
| Debt Service Coverage Ratio | 4.9x |
Source: Feasibility Model
5.7 Investment Returns Analysis
The project demonstrates highly attractive returns, driven by strong profitability and a capital-efficient structure.
| Project Return Parameters | Value |
|---|---|
| Unlevered IRR (10-Year Hold) | 21.5% |
| Investment Payback Period | ~9 Years |
Source: Feasibility Model
Key Investment Metrics
21.5%
Unlevered IRR
(10-Year Hold)
~9
Years
Investment Payback Period
5.8 Sensitivity Analysis
The project's returns are robust under various market conditions. The analysis indicates that even with a 10% decrease in both ADR and Occupancy, the IRR remains strong at over 20%.
IRR Sensitivity to ADR & Occupancy
| Occupancy | -10% ADR | -5% ADR | Base ADR | +5% ADR |
|---|---|---|---|---|
| -10% | 16.4% | 17.8% | 19.1% | 20.4% |
| -5% | 17.9% | 19.3% | 20.6% | 21.9% |
| Base | 19.4% | 20.7% | 21.5% | 23.1% |
| +5% | 20.8% | 22.1% | 23.2% | 24.4% |
IRR Sensitivity to Development Cost
| Cost Variation | -10% | -5% | Base | +5% | +10% |
|---|---|---|---|---|---|
| Unlevered IRR | 24.8% | 23.1% | 21.5% | 20.0% | 18.7% |
Source: Feasibility Model
5.9 Risk Assessment & Mitigation
A proactive approach to risk management has been adopted to identify, assess, and mitigate potential challenges.
| Risk Category | Risk Description | Mitigation Strategy |
|---|---|---|
| Construction | Cost overruns or delays due to island logistics. | - Fixed-Price EPC Contract with a Tier-1 contractor. - Robust 4% contingency budget. |
| Market | Lower-than-projected occupancy or ADR. | - Unique concept insulates from direct competition. - Strategic pricing below market ceiling to drive demand. |
| Operational | Underperformance by the hotel operator. | - Performance-driven Hotel Management Agreement with clear termination rights for the owner. |
| Logistical | Supply chain disruptions for the island. | - Develop significant on-site storage capacity. - Establish relationships with multiple mainland suppliers. |
Conclusion
Conclusion: A Premier, De-Risked Investment
The Red Sea Rivera Resort represents a compelling and timely investment opportunity, meticulously conceived to lead the evolution of luxury hospitality in the Kingdom of Saudi Arabia. The investment case is fortified by a confluence of powerful, de-risking factors:
- A Visionary and Defensible Concept: The 'boho-chic' private island concept creates a unique and defensible market position.
- Exceptional Government Partnership: The project's financial foundation is profoundly enhanced by government support.
- Superior and Verifiable Financials: The model validates a premium ADR of $2,420 and demonstrates superior profitability, an exceptionally strong DSCR of 4.9x, and a highly attractive Unlevered IRR of 21.5%.
- Unparalleled Strategic Location: The resort offers an irreplicable proposition of island exclusivity with airport convenience.
In summary, the Red Sea Rivera Resort is presented not as a speculative venture but as a secure, high-return partnership opportunity to invest in a landmark development set to become a jewel of the new Red Sea coastline.
Appendices
Appendix 1: Detailed 10-Year Financial Projections
| Metric (USD '000) | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Revenue | 48,604 | 62,123 | 71,961 | 74,119 | 76,344 | 78,634 | 80,994 | 83,422 | 85,925 | 88,483 |
| GOP | 13,657 | 21,929 | 27,778 | 29,203 | 30,980 | 31,909 | 32,868 | 33,853 | 34,870 | 34,870 |
| EBITDA | 15,670 | 24,455 | 29,342 | 30,641 | 31,560 | 32,507 | 33,482 | 34,487 | 35,521 | 36,587 |
Source: Feasibility Model
Appendix 2: Trading Forecast Methodology
Seasonality Pattern
Market Growth
Project Penetration
Hotel Occupancy Estimate
Market Positioning
Competitor ADRs
Unit Mix Premium
Inflation
Hotel ADR Estimate
Appendix 3: Macro-Economic Overview
Economic Activity: Non-oil real GDP grew by 4.2% in 2024, driven by private consumption and investment. The IMF projects robust growth of 3% in 2025 and 3.7% in 2026, outpacing the global average. This provides a stable economic backdrop for the Project.
Inflation: Well-contained at a forecasted 2.1% in 2025, protecting investment returns from significant erosion.
Demographics: A young population (approx. 36 million total) creates a strong domestic market for modern, experience-led leisure offerings.
Employment: The unemployment rate for Saudi nationals fell to a record low of 7% in 2024. This Project will contribute directly to job creation.
Source: IMF World Economic Outlook, SAMA, GaStat, 2024/2025
The Red Sea Riviera
Feasibility Study & Financial Model
Prepared By:
[Your Name / Company Name]
[Your Title]
July 2025
Confidentiality Notice: This document is proprietary and has been prepared for the exclusive use of the intended recipients. The information contained herein is from sources deemed reliable; however, no representation or warranty, express or implied, is made as to its accuracy or completeness.