The Aviation Cluband Dubai Duty Free, both local, are planning to build a new hotel next to the Aviation Club in Garhoud. The 250-room five-star boutique hotel will overlook the Creek and will cater for business travellers and visitors.

An enabling and foundations package is expected to be issued in advance of tenders for the main construction package in June 2006. The UK's RMJM International is the lead consultant for the project.

UK-based Millennium & Copthorne Hotels & Resortshas drawn up plans to expand the Millennium Airport Hotel. The project will increase the number of rooms at the hotel to 772 from 496. The operator is also understood to be considering plans to set up a hotel and serviced apartments in Dubai Healthcare City.

Three more hotels offering more than 2,500 rooms are also under development close to the airport at Dubai Festival City. The projects include an estimated AED 250 million ($68 million) Crowne Plaza hotel, a Four Seasons hotel and an estimated AED 600 million ($163 million) Intercontinential hotel. All are scheduled to open in 2007 (MEED 21:10:05).