Aldar Properties, Abu Dhabi’s biggest developer, has bought Ras Al Khaimah’s DoubleTree by Hilton Resort and Spa Marjan Island, as well as an adjacent beachfront development plot for Dh810 million ($220.55m), as it expands its hospitality and leisure investment portfolio in the UAE.
The acquisition, which was made by the developer's subsidiary, Aldar Investment, has added more than 4,250 rooms to its hospitality and leisure portfolio, Aldar said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where its shares are traded.
This is the third investment by Aldar in Ras Al Khaimah this year, after deals to buy Al Hamra Mall and Rixos Bab Al Bahr in February and April, respectively. The company's total investment in the emirate rose to Dh2 billion.
“The mature nature of this five-star asset complements our existing suite of properties in Ras Al Khaimah, which continues to represent a robust hospitality and tourism market with strong growth potential in line with the emirate’s aim to attract three million visitors annually by 2025,” said Aldar Investment chief executive Jassem Busaibe.
“The transaction not only affirms our commitment to the market, but it also adds depth and scale to our reach, given the asset’s complementary value proposition, development potential and target clientele.”
Completed in 2014 and expanded further in 2016, DoubleTree by Hilton on Al Marjan Island is a 724-room, five-star resort under a management agreement with Hilton.
Spanning across 67,000 square metres, the hotel has a number of amenities such as restaurants, spas, a children's club, an aquapark and a private beach.
“Through this investment, we have not only bolstered our portfolio of recurring income-generating assets but also positioned Aldar to capture a greater share of the growing Ras Al Khaimah market through additional development rights at the destination,” said Jahed Rahman, chief investment officer at Aldar Investment and chairman of Aldar Hotels and Hospitality.
Aldar will “continue to assess and pursue opportunities to deploy further capital as we ramp up the execution of our growth strategy and drive value across our platform”, he said.
Alpha Dhabi Holding, a subsidiary of Abu Dhabi-listed conglomerate International Holding Company, has increased its stake in Aldar Properties to become the parent company of the property developer.
The additional shareholding came through Alpha Dhabi’s acquisition of an entity that held shares in Aldar.
Aldar Investment is responsible for managing its Dh23bn portfolio of recurring income assets, including its hospitality portfolio.