São Paulo – UAE property developer Emaar is selling five of its Dubai hotels, as published by the website Gulf News this Tuesday (27). The buyer is Abu Dhabi-based Abu Dhabi National Hotels (ADNH) and the deal should be concluded late this year or early 2019.
The hotels to be sold are the Address Dubai Mall, the Address Boulevard, the Address Dubai Marina, the Vida Downtown (picture above) and the Manzil Downtown. Together, the hotels have nearly 1,000 rooms. According to the deal signed by the companies, the Emaar Hospitality Group, an arm of Emaar Properties, will remain managing the hotels.
“This transaction will strengthen our presence in Dubai and will expand our current luxury portfolio of hospitality assets, which comprises Ritz Carlton Abu Dhabi Grand Canal, The Park Hyatt in Saadiyat Island, and Sofitel JBR, in addition to our upper and upscale properties, namely Le Meridien, Sheraton, and the two Hiltons in the Abu Dhabi Emirate, said Ahmad Mohammad Sultan Suroor Al Dhaheri, ADNH’s vice chairman. The company also holds stakes in resort properties in Morocco and Egypt.
Emaar, which was the developer of some of the largest and most famous ventures in Dubai, such as the Burj Khalifa (the tallest building in the world), the Dubai mall, the Kidzania (education theme park), the Dubai Opera (performance arts center), and the Souk Al Bahar (market), is seeking to move to an asset-light model.
“Emaar’s hospitality business has recorded robust growth since its inception in 2007 and moving to an asset-light model will enable the business to unlock its true potential,” said Mohammad Alabbar, chairman of Emaar Properties.
Emaar recently announced a huge payout to stakeholders. From January to September of this year, the company, which is listed, registered USD 17.3 billion in revenues, a surge of 30% over the same period of 2017. The company’s net profit was USD 5.26 billion, up 28% in the same comparison.
Translated by Sérgio Kakitani
