Dubai's first Versace hotel won't open until end-2014

Palazzo Versace was originally due to open 2009 but developer confirms it’s still 12 months away
Dubai's first Versace hotel won't open until end-2014
By Courtney Trenwith
Thu 19 Sep 2013 04:11 PM

The developer of the much-delayed Dubai resort Palazzo Versace has confirmed the opening date has been pushed back another 12 months.

A spokesperson for developer Enshaa Services Group said it was now not due to open until the second half of 2014, despite being 80 percent complete and a significant number of workers onsite.

Versace CEO Gian Giacomo Ferraris told Arabian Business in May the AED2.3bn ($626m) development would now not open until 2014, but Enshaa had maintained it would be ready by the end of 2013, with a soft opening possibly as early as mid-year.

"With over 1000 tradesmen working on site, Palazzo Versace Dubai is progressing well and is now over 80 percent complete,” the Enshaa spokesperson said.

“Final treatment is being applied to the external facade work, landscape planting has begun and the fit out of this luxury property is well under way.”

Versace CEO Gian Giacomo Ferraris first revealed the new opening date to Arabian Business in May.

“Now we are finalising Palazzo Versace here in Dubai for 2014. It is now in full speed and will be located on the opposite side of Festival City,” Ferraris said.

Enshaa took control of the hotel – only the second in the world developed with Versace, after one on the Gold Coast, Australia opened at the start of the century – in 2011 in a swap deal with the firm’s former Australian joint venture partner, Sunland Group, which took 100 percent ownership of the Palazzo Versace Gold Coast.

The deal also involved Sunland relinquishing its 50 percent share in the under construction D1 residential tower in Dubai to Enshaa.

The Dubai Creek development was due to open in 2009.

Sources close to the Palazzo Versace Dubai project have claimed funding issues have caused the delay, but Enshaa has said it was being partly hindered by a lack of water and electricity on site.

The developer did not respond to Arabian Business questions in relation to reasons for the delay.

“The development cannot be completed without the services infrastructure … and [Enshaa] is currently exploring alternatives to obtaining services including the running of chilled water pipes from a district cooling plant across the creek, and running cables to an alternate power distribution station other than the one which will eventually serve our development,” a spokesperson said in March 2012.

“The delivery dates of the development are per the provisions in the sales and purchase agreement.”

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