Nakheel, Centara ink JV deal to build $136m Deira Islands resort

Thai hotel group partners with Dubai developer to create 550-room beachfront project with waterpark
Nakheel, Centara ink JV deal to build $136m Deira Islands resort
By Staff writer
Mon 09 Jan 2017 02:43 PM

Dubai-based master developer Nakheel and Thai hotel group Centara Hotels and Resorts on Monday signed a joint venture agreement to create a 550-room, AED500 million ($136 million) beachfront resort with waterpark at Deira Islands.

Under the agreement, the two companies will deliver an upscale resort on a prime stretch of beach on Nakheel’s new 15.3 sq km tourism, leisure, retail and entertainment hub, a statement said.

Nakheel said the joint venture with Centara is the latest development in the company’s aggressive expansion into Dubai’s hospitality sector and its second international joint venture for Deira Islands.

The first, an 800-room, AED900 million all-inclusive resort and waterpark with Spain’s RIU Hotels & Resorts, was confirmed in February.

As the first Centara establishment in the UAE, the new resort will cover an area of 295,900 sq ft and include a waterpark, dining facilities, business centre, kids’ club, spa and fitness centre. The resort is anticipated to have soft opening in 2019 and grand opening in 2020, Nakheel said.

Centara’s portfolio currently includes around 14,000 room keys across 65 hotels and resorts under six distinctive brands in Asia, Indian Ocean, and the Middle East.

Nakheel chairman Ali Rashid Lootah said: “Our joint venture with Centara cements our commitment to partnering with successful, reputable international hotel brands to bring new tourism concepts to Dubai in line with the Government of Dubai’s tourism vision.

"Today’s signing is a key milestone in hospitality expansion – and the beginning of a long-term strategic partnership between Nakheel and one of Thailand’s biggest, most popular hotel operators. We look forward to seeing this exciting project come to fruition by delivering a new and unique offering at Deira Islands.”

Suthikiati Chirathivat, chairman of Centara Hotels and Resorts added: “We are thrilled and proud to be partnering with Nakheel on this joint venture hotel investment that will see Centara Hotels & Resorts operate and manage a distinguished new resort in an exciting new destination.

"This partnership is a ground-breaking move for Centara as we continue to extend our upscale resort portfolio internationally. This is Centara’s first hotel in Dubai, and the UAE, and represents our arrival in a key gateway city in the Middle East.” 

Deira Islands, where Nakheel has already invested more than AED3 billion in infrastructure work, coastal works and design services for a range of new projects, will add 40km, including 21km of beach, to Dubai’s coastline.

The development is expected to create more than 80,000 new jobs, and offer hundreds of new hotels, serviced apartments and mixed-use buildings, and extensive retail and leisure attractions. 

Nakheel itself is building 16 residential towers, five hotels, two serviced apartment complexes, Deira Mall, Deira Islands Night Souk and several marinas at the islands.

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