Palm Jumeirah luxury hotel taps banks
- Dubais Emerald Palace Group Hotels and Resorts secures $140m in Islamic finance
- Financing is for the almost complete Emerald Palace Kempinski Hotel on the Palm Jumeirah
- The local Emirates NBD and Qatars Doha Bank are the financiers
Dubais Sunrise Properties and its owner Emerald Palace Group (EPG) Hotels and Resorts have secured AED515m ($140m) in Islamic finance for the Emerald Palace Kempinski Hotel on the Palm Jumeirah, according to local press.
Structural work on the luxury hotel is complete and it is expected to open in 2016. Switzerlands Kempinski Hotels will manage the hotel.
It covers 100,000 square metres and will have 347 rooms as well as a boutique mall and a cinema.
Several hotel projects on the Palm Jumeirah have sought finance from banks this year. They include the Investment Corporation of Dubais Royal Atlantis Resort and Residences, and the local Skai Holdings Viceroy Dubai Palm Jumeirah and Viceroy Dubai Jumeirah Village.
This shows continued bankability for luxury hotel projects on the Palm, despite a softening hotels market overall.
In August, Dubais revenue per available room (RevPAR) fell 10.1 year-on-year to $147.45 as room rates slipped 10.8 per cent year-on-year, according to the UKs Hotstats.
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