Emaar Hospitality Group moves to sell portion of portfolio
The sale, experts and company officials say, will allow the company to focus on the heart of its business, which is focusing on hotel management
A unit of Dubai’s biggest developer is selling part of its portfolio in order to focus on hotel management, continuing to eye listing of its own shares as it does.
The unit is Emaar Hospitality Group of Emaar Properties, and its parent company’s chairman, Mohamed Alabbar, recently told CNBC Arabia that the company is seeking to sell some of its assets, noting as he did that an initial public offering might be possible within four years.
“It is the start of expanding into the hospitality sector,” Alabbar said. “We have to focus on the issue of management and hotel management contracts like other global brands such as Hilton and Marriot.”
Specific details, however, are somewhat sparse, as Alabbar did not reveal which properties would be sold, nor did he speak to the amount of money that the company is aiming to raise. It is also currently unclear when the sales will happen or whether there are currently any prospective buyers who are seriously involved with this decision.
More About Emaar
In terms of more information about the company, it may sell assets that are valued at roughly $1.4 billion, CNBC Arabia has reported.
It has also been reported that Emaar has hired Standard Chartered bank for the sale process, as well as that the company is close to a deal with several parties. In total, experts believe that Emaar wants to raise $700 million through the sale of its entire hotel portfolio with the likely exception of two properties. Also, the company aims to raise another $700 million for clinics and schools that would be part of its many mixed-use communities.
Indeed, Emaar Hospitality currently owns and manages a robust and varied portfolio of assets, one that includes hotels, golf clubs, and restaurants. The company’s main brands include Vida Hotels & Resorts, Rove Hotels, and The Address Hotels + Resorts
The Emaar Hospitality Pipeline
The future for Emaar Hospitality as it makes these deals also appears to be rich and dynamic.
The company currently has a pipeline that contains 35 projects, which are located in countries such as Saudi Arabia, the United Arab Emirates, Bahrain, Turkey, the Maldives, and Egypt. All told, Emaar will bring the total number of the markets that it operates properties in up to 58 locations, according to statements made by the company in April.
Experts throughout the hospitality and property investment industries have praised these recent decisions as positive news for Emaar, which they say has shown a commitment to sticking to its core business of building and developing in cities.
Let’s take a look at a few other projects currently underway by Emaar Hospitality Group:
― Best Stories for you ―