Local developer Nakheel has invited companies to submit bids by 2 November for the contract to build a new hotel tower on the Palm Jumeirah.

The 52-storey Palm Tower Hotel & Residences will be built next to the planned Nakheel Mall and will include 290 guest rooms, 502 serviced apartments, conference rooms, a business centre, a restaurant and swimming pools, with a total built-up area of 95,595 square metres.

Hong Kong-based Shangri-la Hotels & Resorts has signed a letter of intent with Nakheel to manage the property.

The developer formally signed the AED1.2bn ($327m) deal to build Nakheel Mall on the Palm Jumeirah with local contractors United Engineering Construction (UNEC) and Actco General Contracting Company in July.

The two firms were awarded the contract in May this year. The 418,000-sq-m mall will have five retail levels with more than 100,000 sq m of retail space, three basement parking levels with 4,000 spaces, 300 shops, two anchor department stores, a nine-screen cinema, a medical centre and a fitness complex. There will also be a roof plaza with food and beverage outlets. The scheme is expected to be completed in 2016.