Dubai-based developer Nakheel is to put extra emphasis on its hospitality projects as it looks to move further away from a focus on property sales, with plans for an additional 2900 rooms over the next three years.
It revealed the target at a press conference on Wednesday (June 25) as it confirmed that it would pay back all of its bank loans four years early, according to a report by Gulf News.
The additional rooms will come from projected investments of AED4bn ($1.1bn) over the next three years.
“Going forward, the Nakheel strategy will be built on creating recurring income-generating assets rather than just be led by property sales,” said Nakheel CEO Sanjay Manchanda.
“That would lead to creating more assets in hospitality and retail at our projects, and it’s a process that has already begun.”
Nakheel’s early repayment of its debt, totalling AED5.54bn will be funded from its own resources rather than support from the Dubai government, chairman Ali Rashid Lootah told the news conference.
Speaking to the CEO Clubs UAE last year, Manchanda claimed that Dubai was “raining cash”, citing the huge demand in the emirate for hotel rooms.
He added that the tourism sector’s growth seemed unstoppable as new hotel rooms failed to put downward pressure on occupancy levels and room rates.