Emaar Hospitality Group and Abu Dhabi National Hotels (ADNH) have penned an agreement that will see Emaar divest its entire interest in a portfolio of five hotels in Dubai, Emaar Properties announced on Tuesday.
The portfolio of five hotels includes Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown and Manzil Downtown, together with about 1,000 hotel rooms.
As part of the transaction, ADNH will enter into long-term management agreements with Emaar Hospitality to continue operating the assets under the Address and Vida brands.
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“Emaar’s hospitality business has recorded robust growth since its inception in 2007 and moving to an asset-light model will enable the business to unlock its true potential,” Emaar Properties chairman Mohammed Alabbar said.
Sheikh Ahmed Mohammed Sultan Suroor Al Dhaheri, ADNH vice chairman, said that the transaction “will strengthen our presence in Dubai and expand our currently luxury portfolio.”
ADNH’s current portfolio includes the Ritz Carlton Abu Dhabi Grand Canal, The Park Hyatt in Saadiyat Island and Sofitel JBR, as well as Le Meridien, Sheraton and the two Hiltons in Abu Dhabi. Additionally, the company holds stakes in resort properties in Morocco and Egypt.
“With a legacy of over four decades, we are constantly exploring ways to grow and increase value to our shareholders. We are confident that the partnership between ADNH and Emaar Hospitality Group will help drive both companies in their next phase of growth,” he added.
According to the companies, the transaction is subject to meeting various conditions and is expected to occur in late 2018 or early 2019.