Abu Dhabi National Hotels Group signs deal for Ras Al Khaimah resort, plans global expansion

Abu Dhabi National Hotels Group is investing more than AED 1 billion ($272 million) to develop a luxury resort on Al Marjan Island in Ras Al Khaimah and is exploring opportunities for international expansion in the region.

The Abu Dhabi-listed company said on Tuesday it will develop a 1,000-room resort on a 1 million-square-foot site overlooking the Arabian Gulf.

“Ras Al Khaimah is a growing destination with natural resources that very clearly attract people from different classes and from all over the world,” CEO Khalid Anib told National During Tuesday’s Future of Hotels Summit.

“Today, Ras Al Khaimah’s infrastructure supports large-scale projects…it is part of the UAE, and as a national company, we believe in the future of Ras Al Khaimah, and we want to be part of this growth.”

The UAE’s tourism industry continues to recover from Covid-19, supported by government initiatives and effective measures to control the spread of the pandemic.

In the first half of this year, the industry’s revenue exceeded Dh19 billion, Total hotel guests Dubai’s vice-president and ruler, Sheikh Mohammed bin Rashid, said last week that it reached 12 million during the period, an increase of 42 percent.

ADNH will fund its new projects through loans from local traditional banks and its own liquidity, the CEO said.

“We have the financial strength for such a rigorous project and we believe this financial model will create value for our shareholders,” Mr Anib said.

Construction on the project will begin in the first quarter of 2023, with completion scheduled for the fourth quarter of 2024 or the first quarter of 2025, he said.

The company expects the project’s initial investment yield to be around 8% to 12%.

ADNH owns several hotels in Abu Dhabi and Dubai, including Radisson Blu Hotels & Resorts, Abu Dhabi, The Ritz-Carlton, Grand Canal, Abu Dhabi, Le Méridien Abu Dhabi, Sofitel Dubai Jumeirah Beach and Dubai shopping center.

The company reported a profit of around AED110 million in the second quarter of 2022, compared to AED34.3 million in the same period last year, due to higher revenue. According to it, it had assets worth AED 9.6 billion as of June 30. financial report.

ADNH expects ‘significant growth’ in its net profit, consolidated income and Ebitda [earnings before interest, taxes, depreciation, and amortisation] For all of 2022, this could surpass 2019 levels, Mr Anib said.

“We’re looking at big growth in 2022,” he said. “It’s very promising.”

Mr Anib said the company was exploring expansion opportunities in Morocco.

He said it was also looking at opportunities in Saudi Arabia, which has ambitious tourism development but is waiting for more clarity on regulation, taxes, incentives and borrowing costs.

On the M&A front, ADNH has approached a number of entities looking to form partnerships to “create champions” in hospitality, transportation and dining, and be “open to explore” these opportunities, he added.

Ras Al Khaimah “has strengthened its reputation as an investment, hospitality and tourism hub, attracting high-profile investments and having world-class assets,” said Abdulla Al Abdooli, chief executive of Marjan, the developer of the Al Marjan Island project.

“ADNH’s investment in the development of a luxury resort on Al Marjan Island reflects its confidence in the destination’s potential and will spur additional investment.”

On Tuesday, Dubai Investments also announced that it will invest in a Dh1 billion mixed-use waterfront project on Al Marjan Island, which will cover some 90,000 square meters.

Danah Bay will include luxury townhouses and villas, residential beachfront condos, a four-star hotel resort and retail outlets.

“The area offers great potential for residential, hospitality and tourism, and after careful assessment and based on market trends, we have announced an integrated beach community in Ras Al Khaimah that will capitalize on lucrative opportunities in the emirate,” said Dubai Investments. Vice Chairman and CEO Khalid Bin Kalban said:

Abu Dhabi’s largest developer Aldar Properties is also increasing investment in Ras Al Khaimah.

In July, Aldar acquired Marjan Island, a DoubleTree Resort and Spa by Hilton in Ras Al Khaimah, and an adjoining beachfront development site, for AED 810 million to expand its hospitality and leisure portfolio in the UAE.

The developer’s acquisition of Al Hamra Mall in February and Rixos Bab Al Bahr in April brought the company’s total investment in the UAE to AED2 billion.

Al Marjan Island has more than 3,000 hotel rooms, including Hampton by Hilton Marjan Island, Mövenpick Resort Al Marjan Island, Rixos Bab Al Bahr, DoubleTree by Hilton Resort & Spa Marjan Island and Marjan Island Resort & Spa.

Updated: September 20, 2022 1:34 pm