Dubai-based developer Emaar Properties has announced that its wholly-owned hospitality and leisure business subsidiary, Emaar Hospitality Group, has signed definitive documentation with Abu Dhabi National Hotels (ADNH) to divest its entire economic interest in a portfolio of five hotels in Dubai.
The sold assets include Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown and Manzil Downtown, together with about 1,000 hotel rooms, said a statement from Emaar.
As part of the transaction, ADNH will enter into long-term management agreements with Emaar Hospitality Group to continue operating the assets under its Address Hotels + Resorts and Vida Hotels and Resorts brands.
However, both Emaar and ADNH have announced that the deal was subject to meeting various conditions and is likely to be completed by next month or early 2019.
Commenting on the deal, Emaar Properties chairman Mohamed Alabbar said: "Our 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."
Founded in 2007, Emaar Hospitality Group is the leading manager of a diversified portfolio of hospitality assets under the Address, Vida and Manzil brands, serviced residences, leisure clubs, restaurants and spas, said the top official.
The company seeks to disrupt the market with innovative solutions, inspired by modern global travellers and consumers. Emaar Hospitality Group is also the official hotel and hospitality partner of Expo 2020 Dubai.
Emaar Properties had previously announced that its net profits and revenues had grown tremendously in the first nine months on the back of the initial public offering (IPO) of Emaar Development and foreign exchange movements, he added.
ADNH Vice Chairman Sheikh Ahmed Mohammed Sultan Suroor Al Dhaheri said: "This transaction will strengthen our presence in Dubai and will help expand our current luxury portfolio of hospitality assets including the Ritz Carlton Abu Dhabi Grand Canal, The Park Hyatt in Saadiyat Island and Sofitel JBR in addition to our upper and upscale properties such as Le Meridien, Sheraton and the two Hiltons in the Abu Dhabi Emirate (currently under re-branding to Radisson Blu)."
ADNH, he stated, also holds stakes in resort properties in Morocco and Egypt.
Founded in 1976, ADNH is the pioneer of the hospitality industry in the UAE, encompassing hotels, restaurants, destination management services, catering, transportation and retail.
It owns, develops and manages hotels across the country, and operates a variety of first-class food and beverage concepts.
Other companies under the ADNH include Al Ghazal Transport, High Spirits, Sunshine Travel & Tours and ADNH Compass.
"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," he added.-TradeArabia News Service
Emaar unit sells 5 premium hotels to Abu Dhabi group
The sold assets include Emaar's key Address Boulevard hotel.
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