Dubai contracting giant wins contract to build new five-star hotel in Business Bay
Arabtec Construction said on Wednesday it has been awarded the main contract to build a five-star hotel and serviced apartments tower in Dubai.
The AED810m ($220.5m) project will be located in the Business bay district and work is set to start by the end of this month with competion slated in Q2 2015.
The project comprises two towers with 447 rooms and 136 serviced apartments, Arabtec said in a filing to the Dubai Financial Market.
Hasan Abdullah Ismaik, managing director and CEO of Arabtec Holding, said: "This new landmark is expected to play a vital role in support the local tourism and hospitality sector.
"The company is in a very strong position to leverage an extended period of increased activity across the region," he said in the statement.
"We are now starting work on several projects, so the company should see a positive impact on earnings towards the end of the year," he added.
A planned dividend payout of at least 10 percent per annum is expected to take effect from 2013, he said. The company did not pay a dividend in 2012.
Ismaik was appointed as CEO in February as part of a management shake-up led by Aabar, which has been tightening its grip on the group.
The latest project will include business facilities, meeting rooms, banquet halls, a gym, spa and fine dining restaurants, Arabtec said.
Last month, Dubai contractor Arabtec, part-owned by Abu Dhabi state fund Aabar Investments, reported a 25.7 percent drop in net attributable profit for the last quarter as costs rose.
Arabtec, which replaced its chief executive in March as part of a management shake-up, reported a first-quarter profit of AED62.5m ($17m) compared to AED84.1m in the corresponding period of 2012.