Dubai's Nakheel to operate nine hotels by 2016

Company planning to build five hotels on Deira Island development

A previous design for the delayed Palm Deira development, on which Nakheel is planning to build five hotels.
A previous design for the delayed Palm Deira development, on which Nakheel is planning to build five hotels.

Nakheel, the Dubai based property developer and builder of the Palm Jumeirah man-made island, has announced plans to have nine hotels in operation by 2016 in order to benefit from the emirate’s growth as a regional tourist destination, reports Bloomberg.

The company plans to build five new hotels on its unfinished Deira Island development, alongside four other hotel developments across the rest of the city. The hotels will be part of a raft of new projects with a sales value of AED six billion (US $1.63 billion) to AED eight billion ($2.18 billion) that Nakheel will unveil this year including homes, retail and leisure destinations,

Speaking at a press conference in Dubai, Nakheel chairman Ali Rashed Lootah said: “We are seriously thinking of expanding in hospitality, which goes along with the vision of the Dubai government of trying to build enough facilities“.

“By 2016, we will have nine hotels and more to be announced,” he added.

Also at the press conference, Nakheel reported a 27 percent increase in 2013 profits to AED 2.57 billion ($700 million), helped by a 20 percent rise in revenue to AED 9.4 billion ($2.56 billion) as Dubai’s property sector rebounded from the credit crisis.

The company, which was rescued by a government bailout in 2009, said earlier this month it will pay AED four billion ($1.09 billion) of bank debt due in September 2015 this year as it generated cash.

Some of the hotels already announced by Nakheel include the Dragon Hotel, a seven-storey, 246 room, 2 star hotel with direct links to the Dragon Mart shopping centre; International City Hotel, a 10-storey 250 room hotel in Dubai’s International City; and the Ibn Battuta Hotel, a three/four star, 10-storey hotel with 250 rooms which will form part of the planned Ibn Battuta Mall expansion.

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