A Real Estate Fund Will Develop a Five-Star Hotel in Hittin District, Raising Sports Boulevard Investments to More Than SAR 6.2 Billion

Riyadh | BETH

Sports Boulevard Development Company announced the signing of contracts to establish a real estate investment fund with Aljazira Capital and Rikaz Real Estate, valued at more than SAR 700 million, to develop a five-star hotel within the Urban Wadi destination in Riyadh’s Hittin district.

Aljazira Capital will manage the fund, while Rikaz Real Estate will participate as the developer and one of the investors, under a model that combines asset ownership, financing, management, and development within a single investment structure.

The hotel will be built on a land area of approximately 13,500 square meters, with a total built-up area of 34,400 square meters, aiming to strengthen the hospitality and lifestyle sectors within the project.

An Integrated Destination

The Urban Wadi destination is located in Hittin district and extends from Suwaid bin Harithah Street in the west to Empty Quarter Street in the east. It was designed to combine sport, nature, entertainment, hospitality, and community experiences.

The hotel will comply with the Sports Boulevard Urban Code, which is inspired by the principles of Salmani architecture. This will connect the project to Riyadh’s urban identity and prevent it from becoming a hotel building detached from the destination’s overall character.

The hotel’s importance is not limited to providing accommodation. It could serve as a permanent operating hub that receives visitors throughout the day and supports the surrounding restaurants, events, and sports and entertainment facilities.

The presence of an upscale hotel will also give the Urban Wadi destination a greater ability to attract visitors from outside Riyadh, host delegations and events, and transform short visits into longer stays within the area.

The Third Fund

The fund extends an investment model adopted by the Sports Boulevard Foundation to develop real estate and commercial assets in partnership with the private sector.

The Foundation previously announced two real estate funds with a combined value exceeding SAR 5.5 billion in the Arts and Urban Wadi destinations. With the addition of the new fund, the number of funds rises to three, with a combined value exceeding SAR 6.2 billion.

Among the most prominent of these investments is a fund valued at more than SAR 3.5 billion to develop mixed-use towers in the Urban Wadi destination. The development will occupy a land area of approximately 40,000 square meters, with a built-up area exceeding 207,000 square meters, covering residential, office, commercial, and hospitality uses.

The successive launch of these funds shows that investment in Sports Boulevard is not limited to constructing pathways and public facilities. It extends to developing assets capable of generating revenues and attracting long-term private investment.

From Infrastructure to Returns

Upon completion, Sports Boulevard will extend for more than 135 kilometers across Riyadh through a network of sports, environmental, entertainment, and community destinations.

The opening of its first phase in February 2025 included five destinations: Wadi Hanifah, the Promenade, the Arts Tower, the internal route at Princess Nourah bint Abdulrahman University, and the first phase of the Sands Sports Park.

The move toward developing hotels, towers, and mixed-use projects represents a parallel step alongside the project’s public infrastructure. These assets are intended to provide sources of income, raise the value of locations surrounding the boulevard, and attract operators and investors to its various destinations.

The project therefore operates across two complementary levels: a public level that provides sports pathways and green spaces and improves quality of life, and an investment level that develops assets capable of financing the economic activity surrounding these destinations.

What Has Not Been Announced

The announcement did not disclose the hotel brand that will operate the property, the number of rooms and units, the dates for beginning construction and opening, or the fund’s targeted return.

These details will represent the next stage in assessing the project. The hotel’s value will not be determined solely by its category and investment size, but also by the operator’s experience, the quality of services, the expected occupancy rate, and the extent of its integration with the other activities of the Urban Wadi destination.

BETH Commentary

The most important aspect of the announcement is not the construction of another hotel in Riyadh, but the way it will be developed.

Instead of the project owner bearing the entire cost of the commercial assets, the fund brings together a financial manager, a developer, and investors around a project capable of generating returns. This expands private-sector participation and frees public resources for the development of infrastructure and open spaces.

The hotel also changes the function of the Urban Wadi destination. It will no longer be merely a place for exercise and recreation, but a destination where visitors can stay, hold meetings, attend events, and use its facilities throughout the day.

The real test, however, will be the project’s ability to create new demand rather than merely redistribute Riyadh’s existing hotel demand among a larger number of properties.

Sports Boulevard is not merely building a route for movement; it is building an economy along its sides to finance the continuity of that movement.