Hotel brand will operate the Palm360 development in Dubai
Local developer Nakheel has signed an agreement with AccorHotels for the Raffles Hotels & Resorts brand to manage its Palm 360 tower.
The twin tower development will be built on the crescent of the Palm Jumeirah and will include the Raffles The Palm Dubai Hotel and Raffles Residences Palm 360.
Set to open in 2021, Palm 360 will be the first beachside resort for Raffles in Dubai and at almost 260 metres-tall, the towers will be the tallest structures on Palm Jumeirah. The towers are connected by a 155 metre long sky pool 170 metres above the ground. The hotel component will offer 125 hotel rooms and suites, whilst the 359 branded residences – including 16 branded penthouses that will each have their own private infinity pool, gym and cinema – will be available for purchase.
Nakheel plans to tender the construction contract for the Palm360 in the third quarter of 2018.
“The Palm 360 tower we will tender it by the third quarter 2018. It is a big project, one of the major projects for Dubai,” Nakheel chairman Ali Rashid Lootah told MEED in late October.
Developing hotels is part of Nakheel's strategy to grow its recurring revenues.
The company, which reported a net profit of AED4bn ($1.08bn) for the first nine months of 2017 – a 2.5 per cent increase on the AED3.91bn of net profit for the same period last year, has maintained steady revenues this year.
“Revenues were almost the same as last year,” Nakheel chairman Ali Rashid Lootah told MEED on 26 October. “We are doing a lot of construction for the company, our revenue on recurring income is increasing and that is our focus.”
One area of particular focus will be opening more food and beverage (F&B) outlets. “We are also focussing to increase our hospitality and F&B there is a room for growth there as we see it,” said Lootah.
Nakheel is also selling land and built form assets, despite softening prices in Dubai. “We are still selling, we are not in a position where we are going to dump our land, we have good locations and good communities and we are selling in JVC [Jumeirah Village Circle], JVT [Jumeirah Village Triangle], in Al-Furjan, so the demand is there. These are established communities, everything is there,” said Lootah. “In good locations the price is resilient, there are no desperate sales or dumping. This is for land and built form.”
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