Local developer Nakheel and Thai hotel group Centara Hotels & Resorts has signed a joined venture agreement to build a AED500m ($136m) hotel in Dubai.

The two companies will develop the 550-room resort beachfront resort at Nakheel’s Deira Islands development.

The resort will cover an area of 27,490 square metres and includes a waterpark, dining facilities, business centre, kids’ club, spa and fitness centre. The resort scheduled to have soft opening in 2019 and grand opening in 2020.

The joint venture with Centara is its second international joint venture for Deira Islands. The first, an 800-room, AED900m all-inclusive resort and waterpark with Spain’s RIU Hotels & Resorts, was confirmed in February last year.

Nakheel is also building hotels as a traditional developer and hiring operators as part of its strategy to increase its recurring revenues. Altogether it has over 5,300 rooms across 16 hotels, resorts and serviced apartments in operation or under development. Its first two hotels – at Dragon Mart and Ibn Battuta Mall – were delivered in 2016.

For Deira Islands, Nakheel says it has already invested more than AED3 billion in infrastructure work, coastal works and design services for the project. Once complete, the development will add 40 kilometres, including 21 kilometres of beach, to Dubai’s coastline.