Home / Business / Nakheel signs Dh290m deal for four-star hotel

Nakheel signs Dh290m deal for four-star hotel

Dubai-based Nakheel signed on Thursday a Dh290.5 million construction contract with Parkway International Contracting to start building a new four-star beachfront hotel on Deira Islands.
The hotel is being developed by Nakheel and Thai hotel group Centara Hotels and Resorts, under a Dh500 million joint venture between the two. Centara will operate the 601-room hotel, making it the brand’s first hotel in the UAE.

Construction is set to begin next week, Nakheel said at a press conference, with the hotel expected to open in the fourth quarter of 2020. The company will fund the project through its own capital, it said.
The announcement comes even as the hospitality market faces challenges due to growth in supply that is not matched by higher demand. But Nakheel said those challenges were specific to the luxury hotel market, with demand for more affordable accommodation continuing to rise.
Ali Rashid Lootah, chairman of Nakheel, said that four-star accommodation was the fastest-growing segment in 2017, with a 10 per cent growth rate. He added that Dubai had no three- or four-star beach resorts.

“Three- and four-star beach properties are non-existent in Dubai, and I think that’s where the future for [hotels] is, and that’s why we invested in it. That’s missing in Dubai, and the Dubai government already announced it will encourage three- and four-star [hotels],” he said.
Other properties
The new resort will be located at Nakheel’s Deira Islands, and will feature a water park and restaurants. The developer is also constructing other properties there including Deira Mall and Deira Islands Night Souk.
Lootah said the company is focusing on Deira Islands, an area it hopes will turn into a retail and tourism hub. Nakheel has already invested Dh8.8 billion in infrastructure and construction contracts at Deira Islands so far, with the figure expected to rise to at least Dh10 billion by mid-2019 as Nakheel continues to work on the project.
The chairman said Nakheel will be launching residential units in Deira Islands soon. The development will be for beach apartments, with sales of the units expected to start in the first quarter of 2019.

Source: Gulf News

Total Page Visits: 228 - Today Page Visits: 1

Check Also

Russian hackers interfering with US presidential elections

The group of Russian hackers accused of meddling in the 2016 U.S. presidential election earlier …

Leave a Reply

Your email address will not be published. Required fields are marked *