Damac Properties on Saturday announced its first major new product launch since 2008, with 295 premium serviced hotel apartments in the Burj area of Dubai.
The Distinction will be a 195 metre, 53-storey tower with views of the fountain, mall and the Burj Khalifa, the world's largest tower.
The developer said in a statement that the launch was on the back of "improved market sentiment" in the emirate.
It added that The Distinction will "serve the very top top-end luxury sector of the emirate's real estate market".
Dubai is in the grip of a new era of real estate expansion following the announcement of the multi-billion dollar Mohammed Bin Rashid City.
"Luxury projects in prime locations are driving the UAE property resurgence and The Distinction will provide the quality of finish and service expected at this end of the market," said Niall McLoughlin, senior vice president, Damac Properties.
"The serviced hotel apartments at The Distinction will offer the highest levels of customer service, luxury and opulence placing it among the premium products Damac Properties has on the market today."
Main contractor, ANC Contracting, has already started work on the project, which is set for completion in the first quarter of 2015 and will be a mix of studios, one, two, three and four-bedroom penthouses.
The company launched sales of the project from its offices at Ocean Heights in Dubai Marina and at Park Towers in the Dubai International Financial Centre (DIFC) on Saturday.
Damac has so far completed 37 buildings across the UAE, with 7,817 units and nearly 14,000,000 sq ft of space.
McLoughlin added: "In Dubai there remains a strong desire for the very best, and this, combined with an improving economy and limited availability of high-end luxury developments, is driving the demand. We are anticipating a high level of interest in The Distinction."
The tower will include a luxury spa, a gymnasium and swimming pool.
Hotel Serviced Apartments are a relatively new concept to the Dubai market, offering five-star concierge services.