Design work is being carried out for the AED918m ($250m) project and is due to be completed in early 2009.
The client is the Kuwait-based Al-Osaimi Investments & Real Estate and the Japanese Oriental Construction Company.
Bahrain-based Projacs is the project manager.
It is among a number of hotels being launched on the Palm.
In May, the Dubai-based Zabeel Investments announced an Ottoman-themed hotel, which features 410 rooms and 38 villas (MEED 8:5:08).
The most high-profile hotel will be the $600m Trump International Hotel & Tower, which will be built on the trunk of the Palm. The UK’s Atkins is the consultant.