Dubai’s Al Habtoor Group awards $515m contract to Habtoor Leighton Group

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Khalaf Al Habtoor, chairman of Al Habtoor Group

Khalaf Al Habtoor, chairman of Al Habtoor Group

Al Habtoor Group has signed a $515m deal with Habtoor Leighton Group (HLG), the contractor in which it owns a 45 percent stake, to build a luxury hotel in Dubai.

The deal is part of the Dubai-based conglomerate’s $1.3bn overhaul of the Metropolitan Hotel.

HLG, a joint venture between the Al Habtoor Group and Australia’s Leighton Holdings, will construct a hotel complex, comprising a five-level podium, one 26-storey tower and one 25-storey tower, the firm said in a statement to the Australian Securities Exchange.

Demolition for the existing Metropolitan Hotel is scheduled to commence in March with early works likely to begin in June 2012, said LHG.

The Australian firm added that it remained committed to its diversification strategy in the region.

“While the Habtoor Palace is a Dubai building project, our future growth will come from major infrastructure projects in markets outside the UAE, particularly Qatar and Saudi Arabia,” Laurie Voyer, CEO and managing director of HLG, said.

Shares in LHG increased 2.27 percent on Tuesday’s trading following the announcement.

Dubai’s Al Habtoor Group in January announced plans to demolish its 34-year old Metropolitan Hotel and redevelop the area into a tourism complex in a plan valued at $1.3bn.

The conglomerate, one of the UAE’s largest, said it would build three luxury hotels and a string of tourist attractions including a theatre to stage Broadway-style shows.

“The economical situation is flourishing now in the UAE and there is major improvement in the market, especially demand for visitors to the country,” chairman Khalaf Al Habtoor told Arabian Business.

“[The announcement] shows that, parallel to the government of the UAE, we are working hard to represent the country…to prove that this country is a safe haven.”

The project will be funded using cash flow from the privately-owned group but the company may tap the debt markets in the future, he added.

“For the time being we are funding it from our own cash flow. We haven’t been approached by any banks. If we are, definitely we will talk about it."

Construction of the complex, which will include a shopping arcade, a tennis and sports academy and themed restaurants, is set to begin in the first quarter and be completed in 48 months.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
How Dubai is helping Ireland's economic push

How Dubai is helping Ireland's economic push

Tourism is now Ireland’s second-largest industry, and is playing...

Over half of suppliers asked for bribes by hotel managers - survey

Over half of suppliers asked for bribes by hotel managers - survey

Nearly three quarters of suppliers said they know of other firms...

8
The new RNB stars

The new RNB stars

How Jason Myers, Gert Kopera and Christian Gradnitzer plan to...

Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew