R Hotels, the hospitality management division of the Ajman-based R Holding, has appointed Dubai-based ANC Contracting as the main contractor for its Palm Resort and Spa in Dubai.

R hotels also awarded the consultancy contract for the project to the local Erga Progress Engineering.

The $136.2m sharia-compliant scheme, which will include 253 rooms, a spa centre, two restaurants and other recreational facilities, is expected to be complete in the first quarter of 2017, according to a spokesperson at R Hotels.

It is understood that the project is part financed by the Commercial Bank of Dubai.

Earlier this month MEED reported that R Hotel’s plans to develop a new 182-key hotel in Ajman.

Construction on that project, valued at $41m, is expected to start in the third quarter of this year with completion expected in the first quarter of 2017.

The new hotel will be located next to the Ramada Beach Hotel Ajman, which is also owned and managed by R Hotels.