Newstrack

Nakheel and Istithmar join to expand hotel business

EH Staff - Mumbai

Joe Sita

As a part of its internal restructure, Dubai World has consolidated its hotel business under one banner to create a fully integrated hotel investment company. With the merger, the new name of Istithmar Hotels is Nakheel Hotels. The merged entity will remain a wholly owned subsidiary of the Dubai World group and will continue to be led by chief executive Joe Sita. The team will be enhanced with the addition of several key positions. Said Joe Sita, chief executive, Nakheel Hotels, "Nakheel is playing a major role in driving Dubai's tourism growth, increasing the number of hotels in the Emirate by more than 50 per cent through its developments.

It therefore makes sense for Istithmar Hotels to join the Nakheel organisation, providing the hotel's group with additional resources, capabilities, and the backing of one of the world's foremost real estate developers. The hotel's group has already formed a number of key strategic alliances with partners, investee companies, operators and brands and will continue to build and leverage these relationships in pursuing its business strategy under the Nakheel banner." The hotel group was formed in April 2006 as the hotel investment and asset management business of Istithmar and has, in less than 2 years, accumulated a global hotel property portfolio and has already shaped the performance of these properties. The enterprise value of investments to date is in excess of US $3 billion. Nakheel Hotels will continue to pursue its strategy of acquiring luxury hotels in key gateway cities and resorts across North America, Europe and Asia, along with investing in the budget hotels sector in key growth markets.