By Joanne Bladd
Hotel company 50% owned by Mubadala to take over running of Yas Island property
US hotel company Viceroy Hotel Group is to take over the management of Aldar Properties’ flagship Yas Hotel, Abu Dhabi’s largest real-estate developer by market value said Sunday.
Viceroy, which is 50 percent owned by Abu Dhabi investment fund Mubadala, said the deal marked its first property contract outside its home market of North America.
Set in the heart of the Yas Marina Circuit, Yas Hotel was retained by Aldar following its $5.2bn bailout package from the Abu Dhabi government in the first quarter, which saw it sell assets worth $1.48bn, including Ferrari World theme park.
Under the terms of the bailout, Aldar also issued planned mandatory convertible bonds of AED2.8bn in March to state-owned Mubadala.
The builder of the Yas Marina Formula One circuit returned to profit in the first quarter ending a five-quarter losing streak.
Abu Dhabi Motorsport Management, which manages Yas Marina Circuit and is 50 percent owned by Aldar, said earlier this month it would sack at least 60 employees in a bid to trim costs.
Viceroy, formerly known as Kor Hotel Group, operates 15 US-based hotels and retreats and has offices in Abu Dhabi.
The hotel management firm had agreed to run the planned 250-room Viceroy Abu Dhabi on the city’s Sowwah Island development, to be built by Mubadala Development, but it was reported in March the project had been suspended.