Dubai's Emaar sells five hotels to Abu Dhabi firm for undisclosed sum
The sale is part of a strategy to "unlock growth" at Emaar with an asset-light model
Dubai's Emaar Hospitality Group has agreed to sell five hotels to Abu Dhabi National Hotels (ADNH) for an undisclosed fee.
The Abu Dhabi hospitality group's takeover of five Emaar hotel assets – a plan that surfaced earlier this month – is expected to be complete by the end of the year or the start of 2019.
Emaar Hospitality Group, a subsidiary of Dubai real estate developer Emaar Properties, did not disclose the value of the transaction.
Under the teams of the agreement between both parties, ADNH will add approximately 1,000 rooms to its portfolio by acquiring Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown, and Manzil Downtown.
Emaar said ADNH will enter into a long-term management agreement to keep all five hotels operating under the current branding.
Chairman of Emaar Properties, Mohamed Alabbar, said the decision to the five hotels in Dubai would help Emaar's growing hospitality division thrive in the future.
“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,” Alabbar said in a press statement.
ADNH's vice chairman, Sheikh Ahmed Mohammed Sultan Suroor Al Dhaheri, added: “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.
“ADNH also holds stakes in resort properties in Morocco and Egypt. With a legacy of over four decades, we are constantly exploring ways to grow and increase value to our shareholders. We are confident that the partnership between ADNH and Emaar Hospitality Group will help drive both companies in their next phase of growth.”