Date: November 2018
Location: Dubai, UAE
Names: Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown and Manzil Downtown
No. of Keys: Around 1,000
Seller: The five hotels will continue to be managed by Emaar, under their existing Address, Vida and Manzil brands. Emaar currently has 15 properties open, and a further 35 in the pipeline.
Dubai investor Emaar Properties has hired Standard Chartered to help sell its (other) hotel assets.
The Address Downtown hotel, which was reopened in June this year following its closure due to a blaze on New Year’s eve in 2015, is not part of the transaction.
Under the deal, ADNH will enter into long-term management agreements with Emaar Hospitality Group to continue operating the assets under its Address Hotels + Resorts and Vida Hotels and Resorts brands.
Mohamed Alabbar, chairman of Emaar Properties, said: “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.”
Earlier this year, Alabbar said in a interview with CNBC Arabia that the company was seeking to sell non-core assets, including its hotel portfolio, schools and clinics.
Emaar’s core businesses focus on property development, retail and hospitality.
Buyer: Sheikh Ahmed Mohammed Sultan Suroor Al Dhaheri, vice chairman at ADNH said: “This transaction will strengthen our presence in Dubai and will expand our current luxury portfolio of hospitality assets which comprise the 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 (currently under re-branding to Radisson Blu).
“ADNH also holds stakes in resort properties in Morocco and Egypt. We are constantly exploring ways to grow and increase value to our shareholders.”
THPT Comment: Is this Emaar following the asset-light route, or a a reaction to their Q3 profit fall by 29% reported earlier this month? and early signs of a downturn in Dubai property with huge growth in hotel building leading up to the 2020 Expo?
Residential prices in Dubai have fallen by more than 15 per cent since 2014 due to excess supply and muted appetite for new sales. DAMAC Properties earlier reported a 68 per cent plunge in third-quarter net profit.
First Seen: Gulf Business
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