Text size:

  • Small
  • Normal
  • Large
The hotel will have 366 rooms and villas as well as conference facilities, restaurants, a spa and gym and a sand-bottomed swimming pool when it opens in 2015. Courtesy TDIC
The hotel will have 366 rooms and villas as well as conference facilities, restaurants, a spa and gym and a sand-bottomed swimming pool when it opens in 2015. Courtesy TDIC
The Bin Otaiba Investment Group, which owns a hotels portfolio that incudes the Hilton Sharjah, the Millennium Hotel Abu Dhabi and Embassy Suites Hotel in Sharjah, will invest Dh800 million in the Saadiyat hotel. Courtesy TDIC
The Bin Otaiba Investment Group, which owns a hotels portfolio that incudes the Hilton Sharjah, the Millennium Hotel Abu Dhabi and Embassy Suites Hotel in Sharjah, will invest Dh800 million in the Saadiyat hotel. Courtesy TDIC

Bin Otaiba to build luxury hotel at Saadiyat island

Saadiyat Island is set to get another five-star hotel as the capital's cultural district takes shape.

Saadiyat Island is set to get another five-star hotel as the capital's cultural district takes shape.

Tourism Development and Investment Company (TDIC), the master-planner of Saadiyat Island, has sold a plot to the hotel owner Bin Otaiba Investment Group as the land market in the capital shows signs of recovery.

Bin Otaiba, which owns a hotels portfolio that includes the Hilton Sharjah, the Millennium Hotel Abu Dhabi, and Embassy Suites Hotel in Sharjah, plans to build a luxury hotel on the 91,000 square metre site.

Bin Otaiba said the hotel would be worth Dh800 million and that construction work would start on site before the end of the year.

The hotel, which is scheduled to open in 2015, will comprise 366 rooms and villas as well as conference facilities, restaurants, a spa and gym and a sand-bottomed swimming pool.

It will be located in the Saadiyat Beach District on the north-west coast of the island, next to the Monte Carlo Beach Club and close to Saadiyat's two existing hotels the St Regis, developed by TDIC, and the Abu Dhabi National Hotels' Park Hyatt.

In April, the Abu Dhabi-based hotel chain Rotana said that its delayed resort in the same area was back on track and was scheduled to open by 2015 when the new Louvre museum opens its doors.

"We are pleased with the high level of interest we continuously receive from reputable global and regional investors keen on becoming part of Saadiyat and its emerging success story," said Ali Al Hammadi, TDIC's deputy managing director.

"This is a promising destination and a great opportunity that suits our business model," said Khalaf bin Ahmad Al Otaiba, the chairman of Bin Otaiba.

TDIC and Bin Otaiba declined to say how much the hotel owner had paid TDIC for the land, but local property brokers speculated that prices would be much lower than in deals struck during the peak of the market in 2008.

"There has been a limited number of land sales in Abu Dhabi over the last few years," said David Dudley, the head of Jones Lang LaSalle's Abu Dhabi office. "As the market is showing initial signs of recovery, we are now starting to see investor appetite appearing again, particularly within master-developments that are government backed and where there has been solid progress on infrastructure and development activity."

According to TDIC's Saadiyat blueprints drawn up in 2007, 29 hotels are planned to be built across the 27 sq kilometre island.

Nine hotels are planned for the beach district, including a 160-room Mandarin Oriental hotel and a 208-room Shangri-La.

The new deal will come as a lift to TDIC, which in May reported that it lost Dh2.1 billion last year - almost double that of 2011. The company, established in 2006, recorded losses of Dh1.15bn in 2010, Dh551m in 2009 and Dh368.6m in 2008.

This year the company has reported a number of deals that could help stem future losses. In June, TDIC sold 285 apartments to a joint venture between the United States-based property investor Pramerica and Mubadala Development, a strategic investment company owned by the Abu Dhabi Government.

In January, it signed a joint venture with Louis Vuitton linked developer L Real Estate to develop a 168,000 sq metre mall. And in April the developer reported that it had found buyers to reserve all 33 of its luxury beachfront villas, which it is selling for between Dh6m and Dh8m.

The company also announced in April that it had released commercial land plots in the Saadiyat Marina District close to the new site of New York University Abu Dhabi.

 

lbarnard@thenational.ae

Back to the top

More articles


Editor's Picks

 Would you like it in blue? An Afghan shopkeeper shows a burqa to a customer at a bazaar in Herat. (Aref Karimi / AFP /  April 13, 2014)

In pictures: Best business images for the week to April 24, 2014

Here are some of the best business images for the week to April 24, 2014.

 That's asking a lot: this four-bedroom duplex penthouse apartment  at Marina Residence in Dubai is for sale with an asking price of Dh15.7 million. (Courtesy Better Homes / April 2014)

In pictures: Palm Jumeirah penthouse listed for Dh15.7 million

A four-bedroom duplex penthouse in Marina Residence 3 on Dubai's Palm Jumeirah is on the market for Dh15.7 million.

 Room with a view from one of the 21 duplex penthouses located in the Gate Towers sky-bridge. The sports courts and swimming pools can be seen below. Courtesy Alda

In pictures: Aldar’s Gate Towers Penthouse Collection on Reem Island

Aldar launched its Gate Towers Penthouse Collection at Cityscape Abu Dhabi. The launch features 21 penthouses spanning the skybridge, with each having a private indoor pool and incredible views.

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National