New $1b hotel on Palm Jumeirah
Zaya Dubai will be the developers
Click here to add Abu Dhabi as an alert
Disable alert for Abu Dhabi,
Click here to add Doha as an alert
Disable alert for Doha,
Click here to add Dubai as an alert
Disable alert for Dubai,
Click here to add Kabir Mulchandani as an alert
Disable alert for Kabir Mulchandani,
Click here to add Matthew Green as an alert
Disable alert for Matthew Green,
Click here to add Skai Holdings as an alert
Disable alert for Skai Holdings,
Click here to add William Neill as an alert
Disable alert for William Neill
Dubai-based Skai Holdings plans to build a $1 billion (Dh3.67 billion) hotel with over 200 serviced apartments on Palm Jumeirah, the real estate investment firm announced on Wednesday.
The development will be operated by the Viceroy Hotel and Resorts in its first venture into Dubai after its sister property Yas Viceroy Abu Dhabi.
Construction of the Viceroy Dubai Palm Jumeirah, located on the base trunk of the Palm, has begun and is expected to open in the last quarter of 2016.
Skai Holdings is the owner of the project and Zaya Dubai will be the developers, according to the statement.
Besides the 481-room hotel, the project will also include the Viceroy Residences of 221 serviced apartments.
Asked about how the $1 billion project will be funded, Kabir Mulchandani, chief executive of Skai Holdings told Gulf News: “The project is being funded 50 per cent by equity and 50 per cent by debt. The financing has already been obtained and details will be announced formally next month.”
“While the hotel market in Abu Dhabi is crowded, there continues to be a healthy demand for hotel rooms in Dubai. Hotel occupancy rates are running at approximately 85-90 per cent and with Dubai International airport experiencing increasing passenger numbers and the growth of the Al Maktoum airport, we expect hotel demand to remain strong moving forward,” said William Neill, head of Cluttons in Abu Dhabi.
Asked about the potential for another hotel on the Palm, he said: “There remains room on the palm. The southern side of the Palm’s trunk towards it’s base remains largely undeveloped at present. This land would have been earmarked for either a residential or hotel development.”
Commenting on Dubai’s hotel supply, Matthew Green, head of research at CBRE, said: “Dubai’s hotel stock dwarfs the rest of the region with nearly 60,000 keys operational, although other markets such as Doha are slowly catching up. Despite such significant supply, Dubai posted the best performance of any Middle East city with average occupancy rates of 76 per cent during 2012 and one of the best average daily rate (ADR) performances of any global market.”
- Nip, tuck: Dubai's grand plans for being a major player in medical tourism
- Eleven month after bomb attack, Turkish Air resumes flights to Sharm El-Sheikh
- Saudi poised to become new leader in theme park industry
- Bahrain begins large overpass project near new building developments
- Winter wonderland: Dubai debuts Aspen Chalets with view of Ski Dubai
- New summer offers by Kempinski Hotel & Residences Palm Jumeirah
- B&G Hotels and Resorts to run Palm Jumeirah's first managed hotel apartments
- Annual hotel revenues in Dubai near Dh3 billion
- China firm to invest $1 bn in Viceroy Dubai
- How can a hotel possibly cost this much? UAE to direct sovereign wealth towards $1.5 billion hotel on Palm Jumeirah