- Broker Directory
- My Tools
- News & Advice
- Market Trends
- Other GN Sites
Dubai-based conglomerate Al Habtoor Group announced on Tuesday three new residential and hospitality projects in Dubai worth around Dh2 billion.
The company's chairman, Khalaf Al Habtoor, said funding for the projects has been secured, with the majority coming from its internal cash flow and some locally financed.
Work on the three new projects is underway.
Located on Shaikh Zayed Road, the new four-star Metropolitan hotel will feature 334 rooms and suites, cafes, restaurants, meeting rooms, a ballroom, gym and swimming pool.
Alongside the hotel will be the Oasis Villas — 74 four, five and six bedroom units that will be available for rent. These will occupy an area of 20,947 square metres in Jumeirah, at the junction of Shaikh Zayed Road and Al Thanya Street.
Both the hotel and villas, which cost Dh1 billion, are scheduled for completion in 2016.
Also, covering six million square feet, the Al Habtoor Polo Resort and Club will include a five-star hotel with 136 rooms and 162 luxury bungalows. Polo enthusiasts will also have access to a polo club, a polo academy and a riding school with 500 stables.
The development, located adjacent to Emirates Road and Dubai-Al Ain Road, will be completed in three phases at a cost of Dh993 million.
The first two phases include the fields and stables, which are expected to be completed by late 2015 and mid 2016, explained Mohammed Al Habtoor, the company's vice-chairman and chief executive. The final phase involves the hotel and bungalows, expected to open in early 2017, he said.
The chairman said that the company had recorded strong growth in the last three years. Revenue was up 37 per cent, growing on average 12.5 per cent per annum. Net worth for the same period rose 20 per cent, with an average annual growth rate of nearly 7 per cent.
He said all of the company's business units contributed to the growth.
Over the next five years, as the local economy strengthens, the business expects to grow further, driven by its automotive and hospitality businesses and real estate projects.
Al Habtoor Group is involved in a range of sectors including hospitality, real estate, automotive, education and publishing.
Revenue is expected to rise 161 per cent, with an average growth rate of 32 per cent per annum. Net worth over the corresponding period is anticipated to jump 85 per cent, growing on average 17 per cent annually.
''[In] 2015, we are going to grow to that or more, especially in the car business, real estate and hospitality... we are forecasting next year a big jump in our turnover and profitability,'' Al Habtoor said.
The company is not planning to file an initial public offering (IPO) at present, he said.
The vice-chairman said that the company has many projects in the pipeline, but did not provide additional details.
The company is looking at opportunities in the US and Europe. It has bought the Abraham Lincoln hotel in the US.
''In the last two years and 18 months to go we are committed to spend about Dh15 billion for all the projects we are doing,'' Al Habtoor said.
In 2012, the Metropolitan hotel on Shaikh Zayed Road was demolished to make room for Al Habtoor City, a complex including three hotels with 3,000 rooms and three luxury residential towers with more than 1,460 apartments.
Read about Wasl Property Management who are venturing into freehold
Source: Sarah Algethami, Staff Reporter, gulfnews.com