Abu Dhabi National Hotels (ADNH) is looking to acquire hotels in emirates across the UAE following its acquisition of five Emaar Hospitality Group hotels in a $600 million deal in November last year, according to the CEO of the company, which currently has 12 UAE properties in its portfolio.
The hotel owner recently completed the process of adding the Emaar hotels - Address Dubai Mall, Address Boulevard, Address Dubai Marina, Vida Downtown and Manzil Downtown - to its portfolio, which together boast about 1,000 hotel rooms.
Speaking to Arabian Business at the Gulf and Indian Ocean Hotel Investors’ Summit (GIOHIS), Khalid Anib said the company is not looking to acquire more hotels in Dubai, but is considering expansion in other emirates.
“We’re not really [looking to expand further in Dubai]. For us, as Abu Dhabi National Hotels, we will absolutely [acquire more hotels] as long as the opportunity is there and makes sense financially. We’d be happy to. We have lands in Abu Dhabi and we are planning to develop these lands. We’re also looking at other emirates, but the most important element for us is financial viability,” he said.
Anib said the listed company’s decision to acquire Emaar hotels was based on their “great” numbers and “fantastic” performance.
“[Our shareholders] are looking to maximise and optimise their profits, so we believe it was an opportunity for us to acquire these five hotels. We already have Sofitel in JBR and we believe in the whole UAE, including Dubai,” he said.
“It was a purely business decision because the numbers were great and these hotels are fantastic. They’re doing very well and we’re confident that they will continue to do very well. It’s a return on investment - that’s what this acquisition is all about,” he added.
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.For all the latest travel 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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