A brand-new real estate fund valued at over $186 million USD has been launched to construct a luxury five-star hotel within the Urban Wadi development in Riyadh, Saudi Arabia.

The Sports Boulevard Real Estate Development and Investment Company completed the agreement for the project alongside developer Rikaz Properties and fund manager Al Jazira Capital.

Located in the Hittin District, the five-star hotel will occupy a land area of roughly 13,500 square metres, with a total gross floor area reaching around 34,400 square metres. The scheme will sit inside Urban Wadi, a destination spanning from Suwaid bin Harthah Street in the west to Ar Rub Al-Khali Street in the east.

Design plans for the district adhere to the official Sports Boulevard Code. Rooted in the principles of Salmani architecture, the code aims to preserve Riyadh’s local character while creating a connected, active urban hub that combines sports, leisure and hospitality.

This deal represents the third fund established by the Sports Boulevard Foundation. It follows an earlier deal worth over $1.4 billion USD, which targeted assets in the Arts District, the Promenade and Urban Wadi. Combined, the three investment funds now exceed $1.6 billion USD in total value.

The initiative supports the objectives of Saudi Vision 2030 and the Quality-of-Life Program. It aims to generate private investment opportunities while building a more active city environment.

Jayne McGivern, CEO of the Sports Boulevard Foundation, said: “The establishment of these two funds represents an important step in strengthening the project’s investment and development strategy. It reflects our partners’ confidence in the long-term value of the Sports Boulevard, as well as our shared commitment to developing destinations that enhance quality of life, support economic growth, and strengthen Riyadh’s position as one of the best cities in the world to live in.”

Rikaz Properties CEO said, “This partnership with the Sports Boulevard Foundation reflects the growing opportunities within Riyadh’s hospitality and lifestyle sectors. The development of this five-star hotel in Urban Wadi allows us to bring our real estate expertise to a distinctive destination and contribute to the creation of an integrated experience for residents and visitors.”

Al Jazira Capital CEO said, “Managing SB Fund 3 reflects our commitment to supporting investments that combine strong development potential with long-term urban value. This fund demonstrates the role that strategic real estate investment can play in unlocking new opportunities, supporting private sector participation, and contributing to the growth of Riyadh as a leading global city.”

The Sports Boulevard is one of Riyadh’s mega projects. Upon completion, it will extend for more than 135 kilometres through an interconnected network of sports, environmental, and entertainment destinations. The project aims to strengthen Riyadh’s global ranking and support its transformation into one of the world’s most liveable cities.

The opening of the project’s first phase in February 2025 marked a major milestone in its journey, with the launch of five distinctive destinations: Wadi Hanifah, the Promenade, the Arts Tower area, the internal loop at Princess Nourah bint Abdulrahman University, and the first phase of Sands Sports Park. This milestone reinforced the project’s position as one of the Kingdom’s leading urban and environmental projects, enhancing quality of life and connecting the west and east of Riyadh in line with the objectives and achievements of Phase One.