Emaar Properties said on Thursday that a deal to sell hotels to Abu Dhabi National Hotels (ADNH) will be worth nearly AED2.2 billion ($600 million).
The company said in a filing to Dubai Financial Market that the impact of the transaction is expected to be reflected in its first quarter results.
The sales price is “subject to certain adjustments relating to working capital of these hotels,” Emaar said in the statement, adding: “There is no separate value for each hotel.”
Last month, Emaar Hospitality Group and ADNH penned an agreement that will see Emaar divest its entire interest in a portfolio of five hotels in Dubai.
The portfolio of five hotels includes Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown and Manzil Downtown, together with about 1,000 hotel rooms.
As part of the transaction, ADNH will enter into long-term management agreements with Emaar Hospitality to continue operating the assets under the Address and Vida brands.
“The transaction is subject to occurrence of a number of conditions. If the conditions are met, the impact of the transaction is expected to occur in the first quarter of 2019,” Emaar said in the bourse filing.
It added: “The reason for the transaction is to implement the company’s strategy and enable Emaar Hospitality to focus on management and operation of hotels while remaining asset light. The proceeds of sales will be used to finance commercial properties, which generate higher return on investment.”For all the latest UAE news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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