Abu Dhabi-based developer Aldar Properties has cancelled a tender to build the Banyan Tree hotel at its Al-Gurm development.

Two groups submitted bids for the contract in March this year: a team of Abu Dhabi contractors Arabtec Construction and Target Engineering Construction Company; and the UAE/Belgian Six Construct Abu Dhabi.

Aldar says it cancelled the tender so it can redesign the hotel. “We will tender the project again when the design is complete,” says an Aldar spokesman.

The original project involved the construction of a 161-room, five-star hotel, comprising chalets built on individual islands and suites around a central lagoon.

Aldar is building the Al-Gurm resort in a mangrove forest in the Hudayriat channel to the southwest of Abu Dhabi island. The development’s masterplan includes villas and a hotel.

Six Construct won the estimated AED600m ($163m) residential construction package, which involves the construction of the villas plus mechanical, electrical and plumbing works, in May 2007.

Each of the 59 homes in the Al-Gurm development will have a private pool and jetty, and some will have a private beach. Aldar will build nine of the homes on individual islands.

Lebanon’s Dar al-Handasah is the consultant on the project.