UAE property developer Emaar is selling some of its hotel buildings, including the Address Dubai Mall, it has been confirmed.
The master developer of Burj Khalifa announced on Tuesday that it is divesting its “entire economic interest” in at least five of its hotels in Dubai to Abu Dhabi National Hotels (ADNH), the company behind a number of hospitality properties in the UAE capital.
The five hotels to be sold, which have about 1,000 rooms, are Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown and Manzil Hotel. Four of them are located in Downtown Burj Khalifa.
“Emaar’s 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,” Mohammad Alabbar, chairman of Emaar Properties, said.
It’s not clear how much Emaar is selling the properties for, but the deal will be subject to various conditions and is expected to close late this year or early 2019.
The developer has already signed a “definitive documentation” with ADNH to formalise its intention to sell the assets.
Emaar earlier announced it would be distributing a huge payout to its shareholders.
From January to June this year, the publicly listed company stashed a net profit of Dh1.82 billion and a revenue of Dh6.99 billion.
“This transaction will strengthen our presence in Dubai and will expand our current luxury portfolio of hospitality assets,” said Shaikh Ahmed Mohammed Sultan Suroor Al Dhaheri, vice chairman at ADNH, which is the company behind the Ritz Carlton, Park Hyatt, Le Meridien, Sheraton and Hilton hotels in Abu Dhabi.