This is how Emaar's five new Dubai hotels for 2019 are funded
EXCLUSIVE: Emaar Hospitality Group says plan to open five hotels this year is 'unrelated' to 2018 asset sale to ADNH
Emaar Hospitality Group's planned launch of five Dubai hotels before the end of 2019 is “unrelated” to its sale of five hotel assets to Abu Dhabi National Hotels (ADNH), announced in late 2018, a spokesperson for the Emaar Properties unit told Construction Week.
The five hotels, due to be opened under various brands by the Dubai hospitality giant, are being financed separately, a representative explained.
They added: “The new hotels – including Address Fountain Views and Address Sky View, as well as Vida The Hills and Vida Harbour Point – are part of masterplanned developments by Emaar.
“[All hotels] are financed as part of the capital outlay for the master-developments they are part of, and are unrelated to the sale of hotels to ADNH.”
Emaar Hospitality Group confirmed the sale of its Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown, and Manzil Downtown hotels to ADNH in November 2018.
The transaction was valued $598.4m (AED2.2bn), as revealed in a filing on Dubai Financial Market on 20 December, 2018. Emaar Hospitality Group continues to operate the hotels, but the assets are now owned by ADNH.
“Our definitive documentation agreement with ADNH was related to five hotels in Downtown Dubai, which we continue to operate as part of our focus on strengthening our competencies in hotel operations,” the spokesperson said.
“Any plans to sell other hotel assets will be evaluated on a case-by-case basis. We will continue to explore new hospitality opportunities with a focus on management agreements in line with our strategy to be asset-light. In fact, nearly two-thirds of our upcoming hotel projects are under management agreements.”