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Dubai’s Palm island developer to have nine hotel projects by 2016


Nakheel reported a 27 per cent increase in 2013 profit to Dh2.57 billion, helped by a 20 per cent rise in revenue to Dh9.4 billion as Dubai’s property sector rebounded from one of the world’s worst crashes after the credit crisis. – Bloomberg News

Dubai: Nakheel, the property developer at the heart of Dubai's debt crisis in 2009, will have nine hotel projects under development by 2016 to benefit from the emirate's growth as a regional tourist destination.

The builder of palm islands off the emirate's coast may unveil plans to build four new hotels on Deira island along with its existing one, adding to four other developments across the rest of the city, Chairman Ali Rashed Lootah said at a news conference in Dubai yesterday. The hotels will be part of new projects with a sales value of Dh6 billion ($1.63 billion) to Dh8 billion that Nakheel will unveil this year, including homes, retail and leisure destinations, he 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," Lootah said. "By 2016, we will have nine hotels and more to be announced."

Dubai's economy expanded 4.9 per cent in the first half of 2013, led by the hotel and restaurant industry, as growth in the Middle East's tourism and financial hub rebounded. Traffic through Dubai's airport, the world's second-busiest by international passengers, surged 15 per cent to 60.4 million in the 11 months through November, official statistics show.

Nakheel reported yesterday a 27 per cent increase in 2013 profit to Dh2.57 billion, helped by a 20 per cent rise in revenue to Dh9.4 billion as Dubai's property sector rebounded from one of the world's worst crashes after the credit crisis. The company, which was rescued by a government bailout in 2009, said earlier this month it will pay Dh4 billion of bank debt due in September 2015 this year as it generated cash.

Nakheel expects to deliver about 1,600 homes this year after handing over 3,150 homes last year, according to a statement distributed at the news conference yesterday.

At the end of December, it had a new development pipeline of almost 3,500 homes at an estimated value of Dh10 billion, about 3.6 million square feet of leasable retail space with an investment value of Dh6 billion and more than 1,200 hotel rooms at a value of Dh1.5 billion, according to the statement.

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