A US$1 billion Viceroy Hotel is being built on The Palm Jumeirah.
Construction has begun on the hotel and furnished residences project, which is expected to open in the fourth quarter of 2016.
The property, which is located at the base of the trunk of the man-made archipelago, is being built by Skai Holdings, a Dubai-based property investment firm headed by Kabir Mulchandani. It is the company's first new hotel project.
It will be managed by the California-based Viceroy Hotel and Resorts company, which is half-owned by Mubadala, a strategic investment company owned by the Abu Dhabi Government.
The brand already operates one property in the country ó the curvaceous Yas Viceroy Abu Dhabi, which straddles the Formula One racetrack.
"This property marks our first foray into the Dubai market and is a milestone in our growth in the region," said Bill Walshe, the chief executive of Viceroy Hotel Group.
"We expect this property to set a new bar in beachfront luxury, not just for Dubai, but anywhere in the world."
The property, which will be called Viceroy Dubai Palm Jumeirah, will have 481 rooms and suites and more than 220 furnished residences, which will all offer views of the Arabian Sea.
Skai Holdings claims the property will feature 10 of the world's "best restaurants" as well as a gourmet market and bakery. It will also include 800 square metres of spa facilities, with 10 treatment rooms. There will be a beach club, three outdoor swimming pools and more than 350 square metres of indoor fitness facilities.
"The Palm is the perfect mix of beach and city, and the hotel is in a prime site that I believe can't be bettered in the emirate, with immediate access into Dubai Media City and the Marina," said Mr Mulchandani, the chief executive of Skai Holdings.
"It's an amazing site, with incredible views and great neighbours. We know that holidaymakers and residents will fall in love with the location, and the development itself."
Viceory hopes to operate five hotels across the region over the next five years, Mr Walshe said in an interview with The National earlier this year.