Dubai’s latest luxury branded hotel Palazzo Versace could fetch anywhere upwards US$300 million, according to its developer.
The 215-room property designed on the lines of a 16th-century Italian palace complete with infinity pools and handblown Bohemian crystal chandelier, opened in December. A room this weekend at the hotel starts from Dh1,200 a night and can go up to Dh4,320 a night.
“Our business model is to build and then sell, and keep the management,” said Raza Jafar, the chief executive of the hotel’s developer, Enshaa, and chairman of the Palazzo Versace Hotel. The property opened in Dubai’s Culture Village. “We will sell [the Dubai property] at the right time. The hospitality market is stressed but it’s a stable market, a reasonable buyer’s market.”
There is value in owning an ultraluxury brand, said Mr Jafar. The mood among buyers is cautious but there are genuine investors looking for good opportunities, he said.
There are few hotel transactions in the region, where most builders remain as asset owners.
In 2014, Saudi Arabia’s Prince Al Waleed bin Talal’s Kingdom Holding sold Mövenpick Hotel and Apartments in Bur Dubai to UAE-based investors for $95m.
The same year, Oman’s Bank Muscat acquired the 294-room Mövenpick Hotel, Jumeirah Beach Residence in Dubai. The value of the deal was not disclosed.
In 2012, the Sunland Group sold the Palazzo Versace Hotel on Australia’s Gold Coast to private investors for $68.5m.
The Dubai developer is also looking to take the fashion-branded hotel to India, Montenegro, Malaysia, Indonesia and to London and Paris. While the first announcement could come this year, it would take another three to five years to get it ready.
Enshaa would partner with local developers to execute the projects abroad and would keep the management of the brand.
Despite the pressure on room rates and a rash of supply of hotel rooms in Dubai, the developer is confident of selling the rooms.
“The clientele that Palazzo Versace is targeting is ultra-wealthy individuals. If the worth of a client has gone down by 10 per cent or 20 per cent they don’t change their lifestyles,” Mr Jafar said.
“Saying that, we are offering competitive pricing. We are flexible and trying to attract more guests and give more guests the experience to realise the value that we are offering.”
The emirate had 78,184 rooms in November, or a 5.5 per cent increase year-on-year, according to STR Global research.
While the Palazzo Versace hotel and 169 residences cost $625m to build, the adjacent 80-storey D1 Tower, which features 518 apartments, cost $400m.
Prices of the residences have appreciated by 10 to 12 per cent from the time it was under construction, according to Mr Jafar.
Currently, Palazzo Versace residences are going for Dh3,500 to Dh4,000 per square foot, while the D1 Tower residences are going for Dh2,000 to Dh2,300 per square foot, the developer said.
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Company Profile
Name: Direct Debit System
Started: Sept 2017
Based: UAE with a subsidiary in the UK
Industry: FinTech
Funding: Undisclosed
Investors: Elaine Jones
Number of employees: 8
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
The specs: 2018 Alfa Romeo Stelvio
Price, base: Dh198,300
Engine: 2.0L in-line four-cylinder
Transmission: Eight-speed automatic
Power: 280hp @ 5,250rpm
Torque: 400Nm @ 2,250rpm
Fuel economy, combined: 7L / 100km
Bob Marley: One Love
Director: Reinaldo Marcus Green
Starring: Kingsley Ben-Adir, Lashana Lynch, James Norton
Rating: 2/5
Federer's 19 grand slam titles
Australian Open (5 titles) - 2004 bt Marat Safin; 2006 bt Marcos Baghdatis; 2007 bt Fernando Gonzalez; 2010 bt Andy Murray; 2017 bt Rafael Nadal
French Open (1 title) - 2009 bt Robin Soderling
Wimbledon (8 titles) - 2003 bt Mark Philippoussis; 2004 bt Andy Roddick; 2005 bt Andy Roddick; 2006 bt Rafael Nadal; 2007 bt Rafael Nadal; 2009 bt Andy Roddick; 2012 bt Andy Murray; 2017 bt Marin Cilic
US Open (5 titles) - 2004 bt Lleyton Hewitt; 2005 bt Andre Agassi; 2006 bt Andy Roddick; 2007 bt Novak Djokovic; 2008 bt Andy Murray
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October 18 – November 2
Opening fixtures
Friday, October 18
ICC Academy: 10am, Scotland v Singapore, 2.10pm, Netherlands v Kenya
Zayed Cricket Stadium: 2.10pm, Hong Kong v Ireland, 7.30pm, Oman v UAE
UAE squad
Ahmed Raza (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Darius D’Silva, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Junaid Siddique, Sultan Ahmed, Imran Haider, Waheed Ahmed, Chirag Suri, Zahoor Khan
Players out: Mohammed Naveed, Shaiman Anwar, Qadeer Ahmed
Players in: Junaid Siddique, Darius D’Silva, Waheed Ahmed
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Director: Sean Durkin
Starring: Zac Efron, Jeremy Allen White, Harris Dickinson, Maura Tierney, Holt McCallany, Lily James
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Founder: Omar Onsi
Launched: 2018
Employees: 35
Financing stage: Seed round ($12 million)
Investors: B&Y, Phoenician Funds, M1 Group, Shorooq Partners
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1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention
2) There are about 11,000 patients in the country in need of organ transplants
3) People must be over 21. Emiratis and residents can register.
4) The campaign uses the hashtag #donate_hope
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Day 1 at Mount Maunganui
England 241-4
Denly 74, Stokes 67 not out, De Grandhomme 2-28
New Zealand
Yet to bat
COMPANY PROFILE
Company: Sideup
Started: 2019
Founder: Waleed Rashed
Based: Cairo, Egypt
Industry: technology, e-commerce
Funds raised so far: $1.2 million
Investors: Launch Africa VC, 500 Global, Riyadh Angels, Alex Angels, Al Tuwaijri Fund and Saudi angel investor Faisal Al Abdulsalam
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Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed
SPECS
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
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1 Joost Luiten produced a memorable hole in one at the par-three fourth in the first round.
2 To date, the only two players to win the PGA Championship after winning the week before are Rory McIlroy (2014 WGC-Bridgestone Invitational) and Tiger Woods (2007, WGC-Bridgestone Invitational). Hideki Matsuyama or Chris Stroud could have made it three.
3 Number of seasons without a major for McIlroy, who finished in a tie for 22nd.
4 Louis Oosthuizen has now finished second in all four of the game's major championships.
5 In the fifth hole of the final round, McIlroy holed his longest putt of the week - from 16ft 8in - for birdie.
6 For the sixth successive year, play was disrupted by bad weather with a delay of one hour and 43 minutes on Friday.
7 Seven under par (64) was the best round of the week, shot by Matsuyama and Francesco Molinari on Day 2.
8 Number of shots taken by Jason Day on the 18th hole in round three after a risky recovery shot backfired.
9 Jon Rahm's age in months the last time Phil Mickelson missed the cut in the US PGA, in 1995.
10 Jimmy Walker's opening round as defending champion was a 10-over-par 81.
11 The par-four 11th coincidentally ranked as the 11th hardest hole overall with a scoring average of 4.192.
12 Paul Casey was a combined 12 under par for his first round in this year's majors.
13 The average world ranking of the last 13 PGA winners before this week was 25. Kevin Kisner began the week ranked 25th.
14 The world ranking of Justin Thomas before his victory.
15 Of the top 15 players after 54 holes, only Oosthuizen had previously won a major.
16 The par-four 16th marks the start of Quail Hollow's so-called "Green Mile" of finishing holes, some of the toughest in golf.
17 The first round scoring average of the last 17 major champions was 67.2. Kisner and Thorbjorn Olesen shot 67 on day one at Quail Hollow.
18 For the first time in 18 majors, the eventual winner was over par after round one (Thomas shot 73).
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9pm: Maiden (PA) Dh70,000 (Dirt) 2,000m
Winner: Mubhir Al Ain, Antonio Fresu (jockey), Ahmed Al Mehairbi (trainer)
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10.30pm: Maiden (PA) Dh70,000 (D) 1,800m
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11.30pm: Maiden (PA) Dh70,000 (D) 1,400m
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12am: Maiden (PA) Dh70,000 (D) 1,400m
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Transmission: Rear-mounted eight-speed auto
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Industry: Electric vehicles
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