Saturday, May 20, 2023
Anantara The Palm Dubai, a prestigious resort located on one of Dubai’s renowned artificial islands, is reportedly on the verge of being sold for 1.1 billion dirhams ($280 million).
Media reports quoted sources familiar with the matter revealing that United Arab Emirates-based developer Seven Tides, the owner of the hotel, is in discussions with Grant Thornton LLP regarding the potential sale.
While the talks are still ongoing and no specific buyer has been identified, the sale of the luxurious Anantara resort underscores the flourishing tourism industry in Dubai.
Luxury resort features and potential sale
Anantara The Palm Dubai Resort is an opulent property boasting 400 meters (1,312 feet) of private beach overlooking the Arabian Sea, complemented by an intricate network of waterways.
The resort offers nearly 300 rooms and villas, providing guests with a lavish and exclusive experience.
Although no definitive agreement has been reached, insiders suggest that a potential deal worth 1.1 billion dirhams is under consideration, a report read.
Quiet response from parties involved
Representatives from Seven Tides declined to provide comments on the matter, stating that no one was available to respond. Similarly, Grant Thornton chose not to comment on the ongoing talks, respecting the confidential nature of the discussions.
Dubai’s thriving tourism industry
The potential sale of Anantara The Palm Dubai Resort comes amidst a tourism boom in Dubai, which gained momentum during the COVID-19 pandemic.
The city emerged as a safe haven and subsequently attracted numerous affluent expatriates and tourists.
Dubai’s hotels experienced an average occupancy rate of approximately 83% in the year leading up to March, and the average daily rate during the first quarter reached 783.8 dirhams ($213.45), according to a real estate adviser group.
Favorable market conditions for asset owners
Taimur Khan, CBRE’s head of research, was quoted citing the rapid recovery and improved performance of beachfront properties after the pandemic. This resurgence has generated significant interest among investors looking to acquire hotels in Dubai.
Khan emphasized that the current market presents an opportune time for asset owners to divest, as valuations are attractive due to the city’s strong tourism market.
Furthermore, visitor numbers in Dubai have yet to reach their pre-pandemic levels, suggesting that there is potential for further growth in the industry.
Limited supply and beachfront opportunities
Khan also noted the scarcity of supply in the top segment of the market and the limited availability of sites for developers to construct five-star beachfront hotels.
This shortage contributes to the allure of Anantara The Palm Dubai Resort and similar high-end properties, making them highly sought-after investment opportunities.
Thursday, April 18, 2024
Thursday, April 18, 2024
Thursday, April 18, 2024
