K. Hovnanian Middle East, Saudi Arabia Tourism Development Fund, and Emaar, The Economic City Sign MoU to Deliver Tourism Investment and Lifestyle Residential Projects in KAEC

Rhea-AI Summary

K. Hovnanian M.E. Investments (HOV) signed a Memorandum of Understanding with the Tourism Development Fund and Emaar, The Economic City to develop tourism and lifestyle residential projects in King Abdullah Economic City (KAEC).

The MoU targets a landmark Red Sea waterfront site featuring branded private residences, two planned five-star hotels, a central beach club, and wellness facilities; KHME also expects to launch Soleya at the Red Sea (340 private residences) in early 2026.

News Market Reaction

+4.15%

6 alerts

+4.15% News Effect

+4.6% Peak in 39 min

+$29M Valuation Impact

$726M Market Cap

0.3x Rel. Volume

On the day this news was published, HOV gained 4.15%, reflecting a moderate positive market reaction. Argus tracked a peak move of +4.6% during that session. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $29M to the company's valuation, bringing the market cap to $726M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Planned five-star hotels: 2 hotels Soleya residences: 340 private residences Soleya launch timing: Early 2026 +1 more

4 metrics

Planned five-star hotels 2 hotels Initial KAEC Red Sea and Marina Canal development

Soleya residences 340 private residences Soleya at the Red Sea project in KAEC

Soleya launch timing Early 2026 Anticipated launch of Soleya at the Red Sea

Forum year 2026 Future Real Estate Forum where the MoU was signed

Market Reality Check

Price: $123.11 Vol: Volume 122,719 vs 20-day ...

normal vol

$123.11 Last Close

Volume Volume 122,719 vs 20-day avg 98,477 (relative volume 1.25x) indicates somewhat elevated interest ahead of this news. normal

Technical Shares at $111.66 are trading below the $117.53 200-day MA and about 31.1% under the 52-week high of $162.055, while still above the 52-week low of $81.15.

Peers on Argus

HOV was down about 0.88% over 24h while scanner peers like LGIH (+5.22%) and CVC...

2 Up

HOV was down about 0.88% over 24h while scanner peers like LGIH (+5.22%) and CVCO (+4.39%) moved higher. Broader operative builders showed mixed moves (e.g., BZH +2.99%, DFH -1.29%), pointing to a stock-specific setup rather than a clean sector rotation around this MoU.

Historical Context

5 past events · Latest: Dec 04 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 04	Earnings results	Negative	-22.5%	Q4 loss, FY 2025 results and guidance with sharp 1-day selloff.
Nov 20	Earnings preview	Neutral	-1.9%	Announcement of upcoming Q4/FY 2025 release and conference call.
Sep 11	Debt offering priced	Neutral	-2.5%	Pricing of $900M senior notes due 2031 and 2033 for refinancing.
Sep 10	Debt refinancing	Positive	+0.1%	Announcement of $900M senior notes offering to restructure secured debt.
Aug 22	Investor conference	Neutral	+11.0%	Participation in Midwest IDEAS conference with sizeable positive price move.

Pattern Detected

Recent history shows several sharp downside reactions to fundamental updates, including earnings and capital-structure moves, while neutral events like conferences occasionally coincided with strong upside.

Recent Company History

Over the past six months, Hovnanian’s news flow centered on earnings, capital structure, and investor outreach. The Dec 4, 2025 Q4/FY 2025 report, with a small Q4 loss but full-year net income, saw the stock fall about 22.51%. In September 2025, the company announced and then priced $900M of new senior notes and extended its revolving credit facility, with modest mixed price reactions. Conference participation in August 2025 coincided with a double‑digit gain. Today’s KAEC MoU adds a strategic, international real-estate dimension on top of that refinancing and earnings backdrop.

Market Pulse Summary

This announcement highlights a strategic MoU among KHME, Saudi Arabia’s Tourism Development Fund, an...

Analysis

This announcement highlights a strategic MoU among KHME, Saudi Arabia’s Tourism Development Fund, and Emaar, The Economic City to develop high-end tourism and lifestyle residential projects in KAEC, including two five-star hotels and 340 planned residences at Soleya. Set against recent debt refinancing and earnings volatility, it adds a new international growth vector focused on coastal, mixed-use real estate. Investors may track project milestones, capital commitments, and their interaction with margins and liquidity in future disclosures.

Key Terms

memorandum of understanding, mixed-use, foreign direct investment

3 terms

memorandum of understanding regulatory

"has signed a Memorandum of Understanding (MoU) with the Tourism Development Fund"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

mixed-use technical

"international experience in mixed-use, residential, and hospitality destinations"

A mixed-use property combines multiple types of space—such as homes, shops, offices, and sometimes hotels or restaurants—within the same building or development, like a small neighborhood stacked together under one roof. For investors it matters because mixing uses can diversify income streams, boost foot traffic and demand, and spread risk across different tenant types, but also brings added complexity from zoning rules, management needs, and varied lease terms.

foreign direct investment financial

"advances EEC’s ambition to attract foreign direct investment and enable greater"

Foreign direct investment is when an individual or company in one country puts money into and takes lasting control of a business or asset in another country — for example by buying a factory, opening an office, or acquiring a significant ownership stake. It matters to investors because it changes where profits are earned and how companies grow, can alter a country’s economic outlook and currency, and creates long-term opportunities and risks—like planting a permanent branch in a new market rather than making a one-time trade.

AI-generated analysis. Not financial advice.

RIYADH, Saudi Arabia, Feb. 03, 2026 (GLOBE NEWSWIRE) -- K. Hovnanian M.E. Investments, LLC (KHME), a subsidiary of Hovnanian Enterprises, Inc. (NYSE: HOV) and the majority shareholder of Al Tahaluf Real Estate Company, CJSC, has signed a Memorandum of Understanding (MoU) with the Tourism Development Fund (TDF) and Emaar, The Economic City (EEC) to enable high-quality tourism investment and lifestyle-focused residential opportunities in King Abdullah Economic City (KAEC). The parties signed the agreement during the Future Real Estate Forum 2026 in Riyadh.

The MoU establishes a strategic framework for collaboration to advance globally competitive tourism, hospitality, and branded residential developments. It brings together KHME’s international experience in mixed-use, residential, and hospitality destinations, TDF’s mandate to accelerate tourism investment, and EEC’s vision for KAEC as a world-class coastal city.

The partnership will initially focus on a landmark development directly located on the Red Sea beaches and the Marina Canal within KAEC. Envisioned as a signature coastal destination, the project will feature a collection of branded private residences, two planned five-star hotels, and a central beach club, wellness and spa center serving as the hub of the community. This hub will bring together residents, tourists, and visitors through lifestyle amenities, leisure programming, and hospitality-driven experiences. The site represents one of the most iconic waterfront locations in KAEC and is positioned to become one of the most sought-after lifestyle and investment destinations in the Kingdom.

Under the MoU, the parties will collaborate to identify and promote additional tourism investment opportunities, support the development and management of tourism and lifestyle real estate assets, enable partnerships with investors and operators under flexible development and operating models, and make investment-ready sites available to accelerate project delivery.

Commenting on the signing, Qusai Al-Fakhri, Chief Executive Officer of the Tourism Development Fund, said: “This MoU reflects the Fund’s commitment to its role as a national enabler of the tourism sector, through aligning public- and private-sector efforts and building strategic partnerships that support the development of high-quality tourism projects and enhance the participation of local and international private-sector stakeholders in developing coastal destinations and all-inclusive beach resorts across Saudi Arabia.” He added: “As part of the tourism enablement of King Abdullah Economic City, the Fund contributes to enhancing its readiness to attract high-quality investments and global hospitality brands.”

Robert Hofmann, Chief Executive Officer of Al Tahaluf Real Estate, said: “This MoU marks an important step in advancing tourism investment and lifestyle residential developments in King Abdullah Economic City. This project on the Red Sea beaches and Marina Canal further strengthens our growing portfolio of lifestyle communities in KAEC. In addition to this new development, we anticipate launching Soleya at the Red Sea in early 2026, a collection of 340 private residences located between the Red Sea and the Royal Greens Golf Course. Together, these projects will create a true destination, and reinforcing KAEC’s position as a premier destination for global investors and residents alike.”

Commenting on the agreement, Abdulaziz Alnowaiser, Chief Executive Officer of Emaar, The Economic City, said: “The MoU between King Abdullah Economic City and the Tourism Development Fund, in collaboration with the U.S.-based company K. Hovnanian, reflects our strong commitment to supporting the growth of the tourism and hospitality sectors, which offer significant potential. These partnerships build on the city’s accelerated development momentum and its growing stature as an integrated coastal destination, with the aim of unlocking new investment opportunities across the city’s various sectors. Undoubtedly, flagship projects play a vital role in strengthening the city’s tourism offering, attracting visitors from global markets, reinforcing investor confidence, and supporting the long-term sustainability of tourism in line with national priorities and the city’s strategic objectives.”

This strategic collaboration advances EEC’s ambition to attract foreign direct investment and enable greater private sector participation. With its blend of world-class infrastructure, lifestyle-driven planning, and proximity to Jeddah and the western coast, KAEC continues to strengthen its position as a premier coastal lifestyle destination.

About K. Hovnanian Middle East
K. Hovnanian M.E. Investments, LLC is a subsidiary of Hovnanian Enterprises, Inc. (NYSE: HOV), one of the largest homebuilding and real estate development companies in the United States. As the majority shareholder of Al Tahaluf Real Estate Company, CJSC, the company brings international expertise in large-scale mixed-use, residential, hospitality, and lifestyle developments, supporting the creation of sustainable, world-class destinations across the region.

About the Tourism Development Fund (TDF)
The Tourism Development Fund (TDF) is Saudi Arabia's national enabler of the tourism sector, going beyond financing to drive high impact investments and enhance the competitiveness of the Saudi's tourism destinations. TDF enables entrepreneurs and tourism businesses with tailored financial solutions and non-financial support programs while attracting local and international investors to develop landmark tourism projects. With a vision to create a dynamic and attractive investment environment, TDF fosters strategic partnerships, supports economic diversification, enriches visitor experiences, and strengthens Saudi Arabia's position as a leading global tourism destination. Committed to advancing the goals of Saudi Vision 2030 and the National Tourism Strategy, TDF remains a trusted partner, working closely with investors and key stakeholders across the sector.

About Emaar, The Economic City (EEC)
Emaar, The Economic City (EEC) is the master developer of King Abdullah Economic City (KAEC), one of the largest and most ambitious mixed-use developments in the Kingdom of Saudi Arabia. With a strategic location on the Red Sea coast and direct connectivity to Jeddah, the Holy Cities, and major transportation networks, EEC is positioning KAEC as a leading coastal lifestyle and investment destination. Through partnerships with local and international developers and operators, EEC continues to advance high-quality developments that support tourism growth, attract foreign direct investment, and contribute to the long-term economic diversification of the Kingdom.

Media Contacts:

Robert Hofmann
Chief Executive Officer
Al Tahaluf Real Estate Company, CJSC (Al Tahaluf)
Saudi: +966 543 853 901
USA: +1 732 904 4876

Tyler Lewis
Director of Investment
Al Tahaluf Real Estate Company, CJSC (Al Tahaluf)
Saudi: +966 55 287 4982
USA: +1 713 248 2624

FAQ

What did HOV announce on February 3, 2026 regarding KAEC development?

HOV announced an MoU to develop a flagship Red Sea coastal project in KAEC with partners TDF and EEC. According to company, the collaboration targets branded residences, two planned five-star hotels, and lifestyle amenities to attract tourism investment.

What are the main components of the KAEC waterfront project tied to HOV (NYSE: HOV)?

The project includes branded private residences, two planned five-star hotels, a central beach club, and a wellness and spa center. According to company, these elements are intended to form a hospitality-driven community hub on KAEC's Marina Canal.

When will Soleya at the Red Sea by HOV launch and what does it include?

Soleya at the Red Sea is expected to launch in early 2026 and comprises 340 private residences. According to company, the development sits between the Red Sea and the Royal Greens Golf Course within KAEC.

How will the MoU between HOV, TDF, and EEC affect tourism investment in KAEC?

The MoU aims to accelerate tourism investment by making sites investment-ready and enabling partnerships with operators and investors. According to company, the agreement supports promotion, development management, and flexible operating models to attract global hospitality brands.

Where is the planned HOV-led development located within King Abdullah Economic City?

The development is positioned on a prominent Red Sea waterfront site along the Marina Canal in KAEC. According to company, the location is intended to become a signature coastal destination and a focal point for residents and visitors.