May 6 (Bloomberg) -- IFA Hotels & Resorts Co. is in talks with Middle East investors to sell the Fairmont hotel at the trunk of a man-made island in Dubai.
The 381-room property, which opened on the Palm Jumeirah in January, is valued at about $350 million, according to Gabriel Matar, head of hotels in the Middle East and Africa at Jones Lang LaSalle Inc.’s hotel unit. Matar said a deal could be completed in the third quarter.
IFA is in discussions with “potential strategic partners” who are interested in buying a stake in the Fairmont The Palm, Chief Executive Officer Joe Sita said in a statement. The five-star property has 460 meters (1,500 feet) of beach front, 2,200 square meters (23,680 square feet) 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 Jones Lang.
Union Properties PJSC, a United Arab Emirates developer, sold the Ritz Carlton Hotel at the Dubai International Financial Center for 1.1 billion dirhams ($300 million) in 2010.
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