Aldar Properties PJSC, through its Aldar Investment business, has added scale to its diverse and growing hospitality and leisure portfolio with the acquisition of the beachfront resort, DoubleTree by Hilton Resort and Spa Marjan Island, and an adjacent beachfront development plot for a total consideration of 810 million dirhams ($220.5 million).
The acquisition adds considerable weight to the company’s hospitality and leisure portfolio, which now has a total of more than 4,250 keys, and brings Aldar’s total investment in Ras Al-Khaimah to 2 billion dirhams, complementing the recent acquisitions of Al-Hamra Mall and Rixos Bab Al-Bahr.
Jassem Busaibe, chief executive at Aldar Investment, said: “The mature nature of this five-star asset complements our existing suite of properties in Ras Al-Khaimah, which continues to represent a robust hospitality and tourism market with strong growth potential in line with the emirate’s aim to attract 3 million visitors annually by 2025.
HIGHLIGHT
The acquisition adds considerable weight to the company’s hospitality and leisure portfolio, which now has a total of more than 4,250 keys, and brings Aldar’s total investment in Ras Al-Khaimah to 2 billion dirhams.
“The transaction not only affirms our commitment to the market, but it also adds depth and scale to our reach given the asset’s complementary value proposition, development potential, and target clientele. While the acquisition is both value and yield accretive, we still see room for additional upside by leveraging our scale and deploying our asset management capabilities effectively as we continue to grow and transform our platform at an accelerated pace.”
The property, which benefits from above-market average occupancy levels, is located on the first section of Al-Marjan Island, a growing tourism hub and staycation destination in Ras Al-Khaimah. The market continues to exhibit strong tourism growth potential, particularly in light of the progressive measures that the emirate continues to implement as part of a wider and concerted effort to advance its tourism agenda.
Jahed Rahman, chief investment officer at Aldar Investment and chairman of Aldar Hotels and Hospitality, said: “Through this investment, we have not only bolstered our portfolio of recurring income-generating assets but also positioned Aldar to capture a greater share of the growing Ras Al-Khaimah market through additional development rights at the destination. The acquisition adds to the significant investment already made in our recurring income business this year and we continue to assess and pursue opportunities to deploy further capital as we ramp up the execution of our growth strategy and drive value across our platform.”
Completed in 2014 and expanded further in 2016, DoubleTree by Hilton Al-Marjan Island is a 724 key 5-star resort under a management agreement with Hilton. The resort features a GFA of 67,000 square meters and its amenities include eight restaurants, one nightclub, male and female spas, eight pools, a kids’ club and aqua park, a private beach, a gym, one ballroom, three meeting rooms and ample parking area across a total GFA of more than 234,000 square meters.
