Kuwait-based First Qatar Real Estate Development Company (First Qatar) has signed a management agreement with the US’ Hilton Worldwide to operate the 445-room Hilton Doha The Pearl Residence at its $390m Panorama Tower development on the Pearl Qatar.

Currently under construction, the Panorama tower is the tallest building on phase 3 of the Pearl Qatar development, a high-end, mixed-use real estate development being built on a 400-hectare man-made island north of Doha’s West Bay area. The tower will be completed in 2017

Pearl Qatar is being developed in phases by the local United Development Company, Qatar’s largest private shareholding firm. It is the first project in the country to offer freehold property ownership to foreigners. Owners are also eligible to apply for residency permits.

“This is the most significant investment to date in Qatar for our group,” says First Qatar vice president Ala Ramdan. “With its successful track record in attracting tourism and major sports events, Qatar remains a very attractive market for us. The recent increase in commitment at the Pearl, driven by the new management of the UDC, has been a decisive factor that has encouraged us to increase our investment at The Pearl Qatar.”

Hotel investment in Qatar is growing as developers seek to tap into growing business activity in the state on the back of Doha’s push to diversify its economy and its $277bn infrastructure investment programme. Business travellers account for about 65 per cent of Qatar’s tourism traffic with a further 8 per cent driven by conference and events visitors.

A reported 21 million people passed through Doha International airport in 2012 and the opening of Hamad International airport in May is expected to lift passenger numbers to 30 million in 2014.