Abu Dhabi’s Aldar Properties paid more for the family-friendly DoubleTree by Hilton on Marjan Island than it did for the ultra-exclusive Nurai Island, Hotelier Middle East can confirm.
Aldar acquired both in July as part of an ongoing portfolio expansion. The DoubleTree By Hilton Resort & Spa Marjan Island was bought for AED810 million (US$220 million), with an adjacent beachfront development plot included in that price.
At the time, the sale price of Nurai Island was not shared.
However, Nurai Island was bought for AED600 million ($163 million), according to Aldar’s Quarter 2 results for 2022. Similar to the DoubleTree, the price included the purchase of land rights for two other nearby islands.
DoubleTree Al Marjan sale
This acquisition bolsters Aldar’s hospitality portfolio to more than 4,250 keys, with a total investment portfolio of AED2 billion in Ras Al Khaimah alone.
Completed in 2014 and later expanded, DoubleTree by Hilton Al Marjan Island comprises 724 keys.
At the time of purchase, Aldar Investment CEO Jassem Busaibe said: “The transaction not only affirms our commitment to the market, but it also adds depth and scale to our reach given the asset’s complementary value proposition, development potential, and target clientele. While the acquisition is both value and yield accretive, we still see room for additional upside by leveraging our scale and deploying our asset management capabilities effectively as we continue to grow and transform our platform at an accelerated pace.”
RIght now, that “development potential” isn’t clear. Earlier this year, Aldar also acquired Rixos Bab Al Bahr – 715 keys – for $210 million (AED 770 million). As part of the Rixos Bab Al Bahr transaction, Aldar Investment also secured the development rights for an additional 250,000 square feet of gross floor area (GFA) for residential and commercial use.
Nurai Island and other assets bought by Aldar
In February of this year, Aldar Hotels and Hospitality announced a new CEO as the hospitality arm of the company looks to expand. Klaus Assmann is the new chief executive of Aldar Hotels and Hospitality.
He told Hotelier Middle East: “One word that is important for Aldar Hotels now is growth. That’s a word we will apply in all our business verticals. But first, we have to prepare for growth. This year I’m laying the foundation, laying the structure.
“Aldar Hotels and Hospitality has been around for a long time, my task now is to strategise, accumulate and bring everything together. We have a very mixed portfolio and we, as owners, look for as many efficiencies as we can. I would like everybody to work together and to look for synergies.”
Assmann said this growth could take various forms: “It could be new assets, it could be reaching out into different verticals, it’s not just bringing our existing units under one umbrella. I have bigger plans.“