Aldar Properties mulls Dubai hotel acquisition
Abu Dhabi company outlines three-year growth plan for UAE
The hospitality and leisure arm of Abu Dhabi’s largest property company, Aldar Properties, has outlined plans to expand its hotel portfolio to Dubai, with acquisitions the most likely route of development.
Jahed Rahman, director of hospitality & leisure, Aldar Properties PJSC told Hotelier Middle East that the company will focus on the UAE for the next three years, with more properties in Abu Dhabi and a Dubai debut earmarked.
“Dubai is a market that nobody can ignore, especially on the hospitality and leisure side, so it’s very interesting to us,” commented Rahman.
“Our focus is on a stable recurring revenue stream. In order to turn on the tap straight away we think acquisitions are the way to go so we’re going to continue focusing on development, but we’re going to look at acquisitions.
“If we’re looking at acquisitions, some of the best-made properties are in Dubai.”
Rahman outlined plans to link any Dubai Aldar property to the attractions on Yas Island, where the majority of the company’s hospitality and leisure portfolio is based.
“You might stay in a hotel in Dubai for three days and we’ll package it with one or two nights in Yas and then back to Dubai, so it’s fairly easy to do," he said. "The whole focus is on complimentary and synergistic benefits between the two emirates and not necessarily creating competitiveness between the two.”
Aldar’s hospitality and leisure division, which came about following the company’s merger with Sorouh Real Estate, is now a core division of the company.
It was set up to take an active approach to managing and growing the company’s hospitality and leisure portfolio.
Aldar Properties is majority-owned by the government following a $10bn state bailout in 2010 that rescued it from a market crash.
The Hospitality & Leisure division owns and operates a total of nine hotel assets across Abu Dhabi, located within Yas Island, downtown Abu Dhabi and in the Western Region.
The portfolio encompasses 2536 keys in total, 2259 of which are situated on Yas Island.
In addition, the portfolio house a number of leisure assets including Yas Links golf course, Yas Beach, and Bandar Marina, a residential marina serving the Al Raha Beach community. Yas Mall is also set to open later this month, filling a gap in Abu Dhabi’s retail offering.