Knowledge Economic City and Archipelago International Join Forces to Launch One of Madinah’s Largest Hotels and a New Saudi Hospitality Brand

Published on December 4, 2025

Knowledge Economic City (KEC), the publicly listed master developer driving urban and economic transformation in Madinah under the supervision of the Economic Cities and Special Zones Authority, has unveiled a strategic partnership with Archipelago International. The joint venture, established with equal ownership, marks a significant step in KEC’s ambitious expansion into Saudi Arabia’s hospitality sector. Together, the two entities will create a specialized hospitality management company, develop a homegrown Saudi hotel brand, and deliver a major hotel project in Madinah, reinforcing the city’s position emerging center for both local and global tourism

This collaboration underscores KEC’s commitment to positioning itself as a comprehensive investment platform, leveraging partnerships with global leaders to create scalable operational models that generate long-term economic value. The new company will operate under a unified governance structure, tasked with managing and operating hotels and hospitality assets within KEC’s destinations. While the initial focus is on Madinah, the partnership is designed to support potential expansion into other key cities across Saudi Arabia in future phases.

Launching One of Madinah’s Largest Hotel Developments

The joint venture’s inaugural project is set to become one of the largest hotel developments in Madinah, featuring approximately 2,500 keys. This ambitious development ranks among KEC’s most significant hospitality investments and represents a major addition to Saudi Arabia’s growing hotel market. By delivering large-scale, modern accommodations with extensive facilities, the project aims to meet the rising demand from both domestic and international visitors to Madinah, a city that continues to see strong growth in tourism and business travel.

Beyond its scale, the project will serve as the platform for launching a new Saudi hotel brand. Rooted in the country’s rich cultural heritage and the unique identity of Madinah, the brand is designed for long-term growth. Its scalable framework allows for expansion through franchise and licensing agreements, supporting Saudi Arabia’s broader efforts to diversify its hospitality offerings while nurturing homegrown brands that resonate with both local and international guests.

Operational Excellence and Talent Development at the Core

The new hotel management company will operate under a unified governance model, prioritizing operational efficiency, asset optimization, and service excellence. By adopting best practices from Archipelago International’s global expertise and integrating them with KEC’s local market knowledge, the venture aims to deliver a high-quality hospitality experience that meets international standards while reflecting the cultural values of Saudi Arabia.

A key focus of the project is workforce development, with initiatives aimed at enabling national talent to participate across all areas of hotel operations. From management roles to front-line staff, the venture will create direct employment opportunities while generating indirect jobs within related sectors, contributing to the local economy and the Kingdom’s Vision 2030 objectives of fostering sustainable economic growth.

Supporting Saudi Arabia’s Expanding Hospitality Sector

The collaboration between KEC and Archipelago International signals a new chapter in Saudi Arabia’s hospitality landscape. By introducing one of Madinah’s largest hotel developments alongside a homegrown hotel brand, the joint venture not only addresses rising visitor demand but also strengthens the Kingdom’s position as a destination for quality hospitality investment. The project exemplifies how private and public entities can work together to create scalable, sustainable models that balance economic growth with cultural authenticity.

Looking ahead, the partnership is expected to extend its influence beyond Madinah. The company’s operational blueprint and strategic approach are designed for replication in other Saudi cities, allowing KEC and Archipelago International to expand their footprint while continuing to support the growth of domestic tourism and hospitality standards.

With this landmark project, Knowledge Economic City continues to demonstrate its dedication to shaping Madinah’s urban and economic landscape, delivering world-class hospitality infrastructure, and creating long-term value for investors, visitors, and the local community. By combining international expertise with a deep understanding of the Saudi market, the joint venture sets a precedent for future collaborations and positions KEC at the forefront of the Kingdom’s evolving hospitality sector.