Jumeirah Group scraps plans to operate the Jumeriah Al Fattan Palm Resort in Dubai.
Jumeirah Group cancels plan to manage resort on Palm
The Jumeirah Group has scrapped plans to manage a luxury resort under development on the Palm Jumeirah in Dubai.
The hospitality company, which manages hotels including the Burj Al Arab and Emirates Towers and is part of Dubai Holding, signed an agreement with Al Fattan Properties three years ago to manage the planned property. It was provisionally called the Jumeirah Al Fattan Palm Resort.
The hotel is under construction at the far end of the eastern side of The Crescent, the breakwater of the man-made island.
"Both parties have amicably agreed to terminate this management agreement with no obligations outstanding on either side," Jumeirah Group said.
The property was originally scheduled to open in late 2009.
The Turkish operator Rixos Hotels has signed up to take over the resort. It announced last week it planned to open the hotel in December. Renamed the Rixos Residences Palm Jumeirah, the development will include a 204-room hotel and 112 apartments.
It will be the operator's first hotel in the UAE.
Rixos originally had an agreement to manage the Zabeel Saray hotel, also located on the Palm Jumeirah, but the Jumeirah Group took over that management contract last year. The luxury property opened at the beginning of this year.
Jumeirah Group plans to open a luxury hotel at the Aviation Club in Dubai. Meanwhile, its first property in Abu Dhabi, the Jumeirah Etihad Towers, is scheduled to open by September.
The group is also hoping to open properties this year in Frankfurt, Kuwait and Baku, the capital of Azerbaijan.
Jumeirah this month said occupancy at its hotels in Dubai averaged 85 per cent in the first four months of this year, with revenue per available room, a key industry indicator, growing more than 7 per cent compared with the same period last year.
Burj Al Arab's occupancy rose 5 per cent. Revenue per available room increased 12 per cent at the Madinat Jumeirah resort, boosted by a 10 per cent increase in its average room rate.
The group plans to have 60 hotels globally either signed or under management by the end of next year.