Al Habtoor set aside $544 million for acquisitions
Al Habtoor Group's hotel unit has set aside an additional $544 million (AED2 billion) for international acquisitions next year, with a focus on Europe and the United States.
Chairman Khalaf Ahmad Al Habtoor said in a statement (as reported by Arabian Business) that he is eying further investments abroad as the Dubai-based conglomerate reported a strong performance for the first nine months of 2015 with revenue rising 16% compared to the same period a year earlier.
The value of the company’s investments and expansion initiatives in Dubai currently stand at US$ 3.40 billion (AED12.5 billion), the statement said.
Al Habtoor commented: “Our business model has evolved over the past couple of years. We are a different animal to what we were previously.”
"Our automotive division is expanding rapidly. In the hospitality sector we have a spectacular portfolio of five-star hotels in Dubai and we are growing internationally.
“We are looking forward to 2016. We have ambitious plans for the future, however, it is not time to be complacent. We are an active player across many sectors and play a key role in the UAE economy. Therefore we need to ensure we have the right teams in place to reach our full potential.”
The statement said Al Habtoor Motors outperformed expectations during the first nine months of the year, recording year-on-year revenue growth of 17%.
Al Habtoor Group’s hotels division saw revenue expand 23% in the first nine months of 2015, the statement added.
Local assets include The Waldorf Astoria Dubai Palm Jumeirah; The Habtoor Grand Beach Resort & Spa, Autograph Collection, a franchise of Marriott International; and the recently opened St Regis Dubai at Al Habtoor City.
The two other five-star hotels within the upmarket development will open early 2016; The W Dubai – Al Habtoor City and The Westin Dubai, Al Habtoor City.
Occupancy rates at the company’s Dubai hotels saw above average capacity for much of the year, and revenue at all the international properties increased by double digits in the first nine months of 2015.
The company said its Al Habtoor Polo Resort & Club is also due to open at the end of 2016 and will be surrounded by 156 luxury villas, 24 of which will be St Regis-branded.
Other developments under construction include a new Metropolitan Hotel on Sheikh Zayed Road.
The Group reported a jump in revenue at its real estate division of nearly 5% for the first nine months of the year.
“Our real estate portfolio is growing significantly with upcoming developments including the Residence Collection at Al Habtoor City which will introduce more than 1,400 apartments to the city, as well as the villas at the Al Habtoor Polo Resort & Club. These are very exciting times ahead,” said Al Habtoor.