IFA Hotels & Resorts Co., a company partly owned by Saudi billionaire Prince Alwaleed Bin Talal, is in talks with several Middle East investors to sell the Fairmont hotel at the trunk of a man-made island in Dubai, the property broker that’s advising IFA said.
The Kuwaiti owner of the 381-room property, which opened on the Palm Jumeirah in January, wants to raise about $350 million from the sale, according Gabriel Matar, head of hotels in the Middle East and Africa at Jones Lang LaSalle Inc (JLL)’s hotel unit. Matar said a deal could be completed in the third quarter.
The five-star property has 460 meters of beach front, 2,200 square-meters of meeting and conference facilities as well as a 1,600 square-meter spa, according to IFA’s website. It also has seven restaurants and cafes.
The sale, which would be the first on the Palm Jumeirah since the island was built, would be one of the few hotel transactions in Dubai’s thriving hospitality market. Occupancy rates in the city have averaged 87 percent this year, according to JLL.
In 2010, Union Properties PJSC (UPP), a United Arab Emirates developer, sold the Ritz Carlton Hotel at the Dubai International Financial Center for 1.1 billion dirhams ($300 million).
Joe Sita, IFA’s chief executive officer, declined to comment when asked about the Fairmont Hotel on the sidelines of the Arabian Hotel Investment Conference in Dubai.
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