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The splendor of Saudi royal palaces has been imagined by many, experienced by few. Boutique Group, the hospitality company owned by the kingdom’s Public Investment Fund, plans to give a regal taste to the well-heeled masses.
Three former royal and cultural palaces — two in Riyadh and one in Jeddah — are undergoing extensive renovations to attract ultra-luxury guests. The first, the Red Palace in Riyadh, will be open next year, and the rest will be delivered by 2028, Christoph Mares, CEO of Boutique Group, told Semafor. Each hotel will have fewer than 100 rooms, with a focus on suites and villas.
There are more palaces the government is considering for conversion, “in the double digits, but I’m not privy to the exact number,” he said. These facilities are spread across the country, sitting idle, but used to have a function and the company intends to revive more in the coming decade. Boutique has even looked at similar structures in Asia and Europe, though it doesn’t plan international expansion until it builds up its portfolio in Saudi, Mares said.
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Saudi Arabia wants to attract 70 million foreign visitors a year, including religious pilgrims, by 2030, and aims to draw around $80 billion in private-sector tourism investment by around the same time. It still has a long way to go. But based on room rates at the higher end in Riyadh and the new resorts being built by PIF, there is clear demand from luxury travellers.
Boutique won’t attract the masses, but it will serve as branding for what’s on offer in Saudi Arabia. The company will hire around 2,000 people — at least 65% Saudi nationals — when all four palaces are operating, with the staff-to-guest ratio reaching five-to-one, which Mares said “will be one of the highest ever in the world.”
The hotels will offer activities and food that the kings and their families who inhabited the space experienced, such as elite spa treatments and falconry. Boutique has also partnered with Google to create a “virtual museum” to “bring the historical archive to life,” Mares said, highlighting key historical events, agreements, and cultural moments that took place on the grounds.
When asked if there will be enough wealthy foreign tourists willing to make Riyadh a destination, Mares said demand from Saudis is its primary target: “We have a very large domestic audience for these palaces, which one should not underestimate.”