The luxury resort will be located in Obhur, north of Jeddah and less than 30 minutes from King Abdulaziz International Airport.
The 95,000 sq m property will have approximately 150 guest rooms, suites and villas, a One&Only residential component, dining and retail options, a health spa and 230 metres of beachfront.
Kerzner signed the partnership for the hotel with Saudi developer Al Khozama Management Company and operator Saudi Oger.
“I am thrilled we are able to partner with Al Khozama Management Company and Saudi Oger to develop this world-class destination. Jeddah is the perfect location for the first One&Only experience in the Kingdom of Saudi Arabia,” said Alan Leibman, CEO, Kerzner International.
“The beachfront location is remarkable and I am very confident the resort will be well received by our many loyal One&Only guests and new guests alike.”
“Al Khozama is proud to be associated with Saudi Oger and Kerzner International. We are excited about this new development and its expected contribution to the continued growth of Jeddah in particular and that of the country’s hospitality sector in general,” commented His Highness Prince Bandar bin Saud bin Khalid, Chairman, Al Khozama Management Company.
Saudi Arabia is keen to boost its fledgling leisure tourist segment as it works towards attracting larger numbers of visitors to its historical and cultural attractions. According to data from STR Global, there are 97 hotels in the total active pipeline in Saudi Arabia, representing 29,668 rooms.
Hotel performance in 2013 in the kingdom is significantly outpacing 2012. In February, occupancy in Saudi Arabia was 73.7%, up 6.6% over February 2012. Average daily rate was 717.67 riyals ($191.37), up 5.2%; and revenue per available room was 528.89 riyals ($141.03), up 12.1%.
Real estate analysts estimate the Saudi hotel market could absorb more than 35,000 new hotel rooms over the next five years.
The One&Only brand currently operates seven hotels, including two in Dubai and one each in Mauritius, Maldives, The Bahamas; Mexico, and South Africa. One&Only has also announced plans to develop a resort in Sanya, China, as well as One&Only Montenegro, the first property for the collection in Europe.