Abu Dhabi-headquartered real estate development, management and investment firm Aldar Properties PJSC (Aldar), through its Aldar Investment business, has added to its growing portfolio of hospitality and leisure assets with the acquisition of the 715-key all-inclusive Rixos Bab Al Bahr beach property in Ras Al Khaimah’s Al Marjan Island for $210 million (AED 770 million).
The acquisition adds further scale to Aldar Investment’s growing hospitality and leisure portfolio and will bring its total investment in Ras Al Khaimah to $408.38 million (AED 1.5 billion), including the earlier acquisition of Al Hamra Mall and additional development rights at both properties.
As part of the Rixos Bab Al Bahr transaction, Aldar Investment has secured the development rights for an additional 250,000 square feet of gross floor area (GFA) for residential and commercial use.
RAK Hospitality Holding has also confirmed the sale of its hotel asset, the Rixos Bab Al Bahr in Ras Al Khaimah to Aldar Investment.
Opened in 2014, Rixos Bab Al Bahr offers guests an ultra-all-inclusive experience including luxurious accommodation, diverse choice of upscale dining options, and a host of recreational activities and entertainment.
An established staycation destination in Ras Al Khaimah, the property benefits from solid occupancy levels, with significant growth potential as the emirate rolls out progressive initiatives to advance tourism and position Ras Al Khaimah as an international leisure destination.
Commenting on the transaction, the chief executive officer at Aldar Investment, Jassem Busaibe, said: “Ras Al Khaimah continues to rise in popularity as a tourist destination as international borders open and leisure travel returns, and we expect further upside as the Emirate executes on its strategy to become the regional leader in environmentally conscious tourism by 2025. With that in mind, we are pleased to add Rixos Bab Al Bahr to our portfolio of income-yielding hotel and hospitality assets.
Busaibe added: “The acquisition is underpinned by the tremendous potential of the Emirate as a tourist hub, our robust asset management capabilities as well as the strong operating fundamentals and mature nature of the asset itself.
“In addition to the transaction being value- and yield-accretive to our recurring-income generating portfolio, it allows us to build further scale and enhance diversification, which is a key tenet of our strategy going forward.”
Alison Grinnell, the chief executive officer of RAK Hospitality Holding said: “RAK Hospitality Holding, through its Hotel portfolio subsidiary, is further delivering on its growth and diversification strategy. Rixos Bab Al Bahr has demonstrated huge resilience during the pandemic, and has emerged stronger with a unique ultra all-inclusive offering.
“Following Aldar’s recent acquisition of Al Hamra Mall we are delighted to further strengthen the partnership through this investment in Ras Al Khaimah’s hospitality sector. Aldar’s investment in the emirate contributes to enhancing the hospitality experiences for our tourists and residents, adding to the Emirate’s destination appeal.”
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