Anantara The Palm Dubai is reportedly close to being sold for AED1.1 billion ($280 million), according to a report by Bloomberg, which cited sources familiar with the matter.
The Anantara resort, which has 400 metre (1,312 feet) private beach overlooking the Arabian Sea, has almost 300 rooms and villas.
Seven Tides, which the hotel’s owner is currently working with Grant Thornton LLP on the potential sale, the sources said. However, there is “no certainty” a deal will go ahead, the report said.
The talks came amid Dubai’s tourism boost after the emirate emerged as a safe city during the pandemic. The city is also home to wealthy expats and tourists, with occupancy rates in hotels averaging about 83 percent in the year through March.
The average daily rate reportedly reached AED783.8 ($213.45) in the first quarter, according to real estate advisor CBRE Group, the report noted.
“Beach properties’ performance improved very rapidly after the pandemic and that’s driving considerable interest in the few hotels available to investors,” Taimur Khan, CBRE’s head of research said adding that “this is an opportune time for asset owners to exit as valuations look attractive with the strongest market we’ve had in years.”
Khan added that there is also “very little supply coming into the market within the top segment,” as investors expect Dubai visitor numbers could rise further as they have not returned to 2019 levels.
“Also few sites remain where a developer is able to build a beach front five-star hotel,” he added.
