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Sun 18 Jan 2015 05:21 PM

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Hotel group secures $55.5m financing to back Palm project

R Hotels wins funds from Commercial Bank of Dubai to support plan to open 259-room Palm property in Q4 2016

Hotel group secures $55.5m financing to back Palm project
A general view of Palm Jumeirah. (AFP/Getty Images)

R Holding/R Hotels said on Sunday it has secured financing worth AED204 million ($55.5 million) from Commercial Bank of Dubai to back the development of its recently announced property in Palm Jumeirah.

The fund is part of R Hotel’s AED500 million hotel investment on The Palm, which is set to open on the last quarter of 2016, the company said in a statement.

Located at The East Crescent of The Palm, the new four-star resort and spa will feature 259 rooms and leisure and wellbeing facilities.

The first phase of the construction will start in the first quarter of 2015 and the group is targeting the fourth quarter of 2016 as its completion date.

Sumair Tariq, managing director of R Hotels, said: “By capitalising on strategic hotel locations in the UAE, R Hotels is confident on the stable return of investments of all our projects in the pipeline, especially our property in Palm Jumeirah. We are pleased to have CBD on board, to guarantee that the project is backed by an established financial institution.”

R Hotels currently owns and manages four properties in the UAE including Ramada Hotel and Suites Ajman, Ramada Beach Hotel Ajman, Ramada Downtown Dubai, and Hawthorn Suites by Wyndham in Jumeirah Beach Residence.

The group will open its fifth hotel in Jumeirah in Q2 2015.

Tariq added: “Our properties in Dubai and Ajman are all doing well in the market and we are poised toward growing our portfolio, with a goal to be one of the fastest-growing hospitality management companies in the Middle East.”

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