Dubai’s Carlton Downtown hotel on Sheikh Zayed Road has been bought by a unit of the conglomerate Al Fardan Group in a rare hotel investment deal in the emirate.
Al Fardan announced on Tuesday that it had purchased the 47-storey tower, formerly known as the Warwick Hotel, comprising 357 rooms, seven restaurants and bars – and home to Dubai’s highest open-air rooftop pool – through its The First Investor subsidiary.
The hotel is believed to have changed hands for about Dh500 million, according to sources close to the deal.
“Our strategy is to invest in high-growth markets such as Dubai and this fantastic acquisition will reinforce our market position,” said Hosni Abdelhadi, the chief executive of Carlton Hotel Management Company.
The Carlton Downtown will be the third hotel to be operated by Carlton Hotel Management – a brand owned by The First Investor – following the Carlton Palace Hotel and Carlton Tower Hotel in Deira.
The company also owns and operates Marriott Executive Apartments, Villa Rotana and Four Points by Sheraton in Dubai as well as the Imperial Palace Hotel in Jordan and the Sun Hotel and Belvedere Hotel in the Czech Republic.
Local sources said the seller was looking to part with the hotel to reinvest in its core retail business. It had not been able to capitalise on the economies of scale open to a larger hotel operator.
lbarnard@thenational.ae
Follow The National's Business section on Twitter
