Liquid air energy storage (LAES) is a promising but under-developing electricity storage concept for large-scale applications, which has gained a lot of attention in recent years. No geographical restrictions, acceptable cost-effectiveness level, and high energy density are some of the main advantages of this technology. On the other hand, the immature state-of-the-art, and lower power-to-power round-trip efficiency compared to other competitors are referred to as its main drawbacks which should be addressed for the successful development of this concept. The current research proposes a novel hybrid design for the LAES to improve its electrical efficiency and to introduce it as a multi-generating unit being capable of tri-generation of power, heat, and potable water. The proposed hybrid system results in an overall efficiency of over 71% which is already ~23% better than the conventional design of a stand-alone LAES. Thermodynamic analysis of the proposed hybrid system is performed; the simulation results are validated using the existing data in the literature. The multi-objective optimization algorithm is developed to optimize the system configuration and operating characteristics. 88.6 MWh off-peak renewable-based electricity is stored during 8 h to provide 52.8 MWh electrical energy during 4 h of the peak period. Also, 59 m³ potable water and 938.8 m³ hot water are produced during 12 h of system operation.