Emaar Properties is hoping to raise $1.4 billion through the sale of its non-core assets including much of its hotel portfolio.
An Emaar spokesperson told HotelierMiddleEast.com: “It has always been Emaar’s strategy to monetise core assets including our hospitality business at the right time to provide further growth capital and create significant value for our shareholders.”
The Dubai-based hospitality company will focus on solely operating hotels.
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Mohamed Alabbar said in an interview with CNBC Arabia: "It is the start of expanding into the hospitality sector. We have to focus on the issue of management and hotel management contracts like other global brands such as Hilton and Marriott."
According to the Financial Times newspaper, Standard Chartered bank is involved in the sale process and is close to a deal with several parties, the newspaper reported.
Reports also suggest that Emaar wants to raise $700 million by selling its entire hotel portfolio except two properties.
Emaar Properties recorded revenue growth of AED 5.586 billion ($1.52 billion) in the first quarter of 2018, a 37 percent increase over Q1 2017.
According to the company’s Q1 financial results, Emaar’s net profit rose 20% to AED 1.66 billion ($453 million) – prior to considering the effect of Emaar Development’s IPO – compared to AED 1.38 billion ($377 million) in the same period of 2017.
Taking the Emaar Development IPO into account, Emaar Properties’ net profit over the time period is AED 1.5 billion ($409 million), an 8.5% increase over Q1 2017.