Exclusive: Twenty14 Holdings is also looking for a greenfield hospitality project in Dubai
Twenty14 Holdings, the hospitality investment arm of the Abu Dhabi-based LuLu Group, is set to start work on a greenfield hotel project in Abu Dhabi, the company’s top executive said.
Twenty14 Holdings is currently in the process of carrying out feasibility studies more hotel projects, including a greenfield hospitality property in Dubai, as well as further ventures in Europe and India, the company’s MD said.
“We will be soon kick-starting a hotel project in Abu Dhabi,” Adeeb Ahmed, MD of Twenty14 Holdings, told Arabian Business in an exclusive interview.
"In the GCC, our focus for another development would only be in Dubai.
“While there might be a bit of stress on the average RevPar (revenue per room), we believe that Dubai will sustain in the longer run as global tourist destination. The city has great potential for tourism and its supporting sectors, and we are open to acquiring a greenfield project in Dubai at the right value,” Adeeb added.
Twenty14 Holdings already has two properties in Gulf region – the Steigenberger Hotel Business Bay in Dubai and the Sheraton Oman Hotel in Muscat.
Twenty14 Holdings, which has recently announced its first hotel project in mainland Europe - the 241-room Intercity Hotel at Zurich Airport, also entered into a £110 million agreement with developer Galliard Homes to create a luxury hotel at 1-5 Great Scotland Yard, the former headquarters of London’s Metropolitan Police Services.
“We aim to have a diverse set of properties that will include city hotels, resorts and spa destinations, among others. Work is underway on a handful of properties in Europe and India,” Adeeb said.
“Feasibility studies are also underway for a few other projects in India and Europe.”
Adeeb said Twenty14 Holdings will bring some key hotel brands to India for the very first time.
“We are introducing the first ‘Tribute Portfolio by Marriott’ in Kochi (Kerala) as well as the first ‘Residence Inn by Marriott’ at Electronic City in Bengaluru, which will be a 115-room property.”
Bengaluru will also have another 200-room Marriott near the Kempegowda International Airport, while a 150-room hotel will be constructed near the newly opened Kannur International Airport in Kerala.
Adeeb said the group is also open to acquiring brownfield or greenfield hotel and resort projects in India “if offered at the right price”.
“We are open to making the right acquisition, when the opportunity arises. We are interested in doing both brownfield or greenfield projects, as we feel there is a value creation to such acquisitions,” said Adeeb, who is also the MD of Lulu Group’s financial services business.
Adeeb, however, said his company is currently not in talks with the promoters or creditors of any of the stressed properties in the hospitality sector in India.
“Currently, both our projects in Bengaluru are brownfield properties. While our current focus is on completing works on assets that we have bought, we are open to take on more brownfield projects in GCC and India,” he said.
Adeeb said Twenty14 Holdngs will not tap the market or private equity funds for resources but will fund the proposed expansion plans in the hospitality sector through a mix of internal accruals and debt.
“We have already invested more than $750 million in a portfolio of properties across the world. Our aim is to have a $1 billion asset base by the year 2020,” he said.
“We are looking at funding (the proposed expansion plans) through a combination of equity and debt. We are not looking at raising funds from PEs/markets or a public issue.”