The $598.4m (AED2.2bn) sale of five hotel assets by Dubai’s Emaar Hospitality Group to Abu Dhabi National Hotels (ADNH) has officially closed, a regulatory filing has revealed.
The hospitality arm of Dubai development heavyweight Emaar Properties said the “conditions of the transaction have been satisfied and the transaction has been completed”. Its missive was issued to Dubai Financial Market on 12 February, 2019.
The news comes less than three months after the deal between Emaar Hospitality Group and ADNH was formally announced, which will see the latter enter into a long-term agreement to keep all five hotels operating under the current branding.
In December 2018, Emaar revealed the total price tag for the five hotels – Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown, and Manzil Downtown – stood at $598.4m.
“The reason for the transaction is to implement [Emaar’s] strategy and enable Emaar Hospitality to focus on management and operation of hotels while remaining asset light,” a separate bourse statement, issued on 20 December, read.
“The proceeds of sales will be used to finance commercial properties which generate higher return on investment,” it added.
Individual hotel sale values have not been revealed.
In January 2019, architecture consultancy SSH announced that it is nearly finished with its interior facelift of Emaar’s reopened Address Dubai Mall in Downtown Dubai – a hotel that is directly linked to the world's largest shopping centre. In December last year, Emaar said it is expanding its premium luxury hotel and serviced residences brand, Address Hotels + Resorts, to China. The hospitality brand's launch, the firm added, will be in “key cities in the country, building on the familiarity that it enjoys among Chinese tourists”.