R Hotels has confirmed that it has secured AED204 million (US $55.5 million) in funding from the Commercial Bank of Dubai (CBD) to develop a new, sharia-compliant hotel on Palm Jumeirah.
Located on the East Crescent of the manmade archipelago, the as yet unnamed property will be a four-star resort and spa; featuring 259 rooms, it is requiring a total investment of AED500 million (US $136.1 million) from R Hotels.
The first phase of the construction will in the current quarter, and the developer is targeting a completion date in the fourth quarter of 2016.
“By capitalising on strategic hotel locations in the UAE, R Hotels is confident on the stable return of investments of all our projects in the pipeline, especially our property in Palm Jumeirah,” said R Hotels managing director Sumair Tariq.
“We are pleased to have CBD on board, to guarantee that the project is backed by an established financial institution.”
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While an operator has not yet been named for the new resort, R Hotels already owns and manages four properties in the UAE: Ramada Hotel and Suites Ajman, Ramada Beach Hotel Ajman, Ramada Downtown Dubai, and Hawthorn Suites by Wyndham in Jumeirah Beach Residence. It will open its fifth hotel, in Jumeirah, in Q2 2015.
The new Palm resort is set to feature modern recreational facilities, including a spa for men and women, gym, and swimming pool, and R Hotels is planning to also offer wellbeing treatments, plus fitness and nutrition programs.
Other features will include an all-day dining restaurant and poolside bar, as well as a sauna and steam bath. Amenities and activities exclusively for children will include a fully-supervised indoor and outdoor play area, and special kids’ entertainment.
Commercial Bank of Dubai general manager corporate, commercial & investment banking Alain Renaud said: “The hospitality market is witnessing increased growth in the UAE, and CBD is committed to supporting the sector’s development given its strategic importance to the UAE’s economy and its contribution to GDP growth.
“In recent years R Holding/ R Hotels has emerged as a major participant in the hotel sector and we are delighted to support the company in the development of its prestigious new project in Palm Jumeirah.”
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