Ajman’s R Hotels Gets Dhs204m Funding For Palm Project

Ajman-based R Holding revealed that its hospitality unit has secured funding worth Dhs204 million from Commercial Bank of Dubai (CBD), to support the development of its new property in Palm Jumeirah.

The fund will form part of R Hotel’s Dhs500 million hotel at the Palm, which is set to open on the last quarter of 2016, a statement said.

Located on the east crescent, the new four-star resort and spa will feature 259 rooms and leisure facilities.

The first phase of construction will start in the first quarter of 2015, the company said.

Sumair Tariq, managing director of R Hotels, said: “By capitalising on strategic hotel locations in the UAE, R Hotels is confident on the stable return of investments of all our projects in the pipeline, especially our property in Palm Jumeirah.”

Having CBD on board “guarantees that the project is backed by an established financial institution,” he added.

Alain Renaud, GM – Corporate, Commercial & Investment Banking, CBD, said: “The hospitality market is witnessing increased growth in the UAE, and CBD is committed to supporting the sector’s development given its strategic importance to the UAE’s economy and its contribution to GDP growth.”

R Hotels currently owns and manages four properties in the UAE including Ramada Hotel and Suites Ajman, Ramada Beach Hotel Ajman, Ramada Downtown Dubai, and Hawthorn Suites by Wyndham in Jumeirah Beach Residence.

The group will open its fifth hotel in Jumeirah in Q2 2015, while the project at the Palm will be its sixth property in the UAE.

Tariq added: “Our properties in Dubai and Ajman are all doing well in the market and we are poised toward growing our portfolio.”

The UAE’s hospitality industry has been booming even as the country readies to welcome more tourists and prepares for Expo 2020 in Dubai.

However, in a report issued on Sunday, property consultant JLL stated that with an additional 4,700 keys due for completion in 2015, Dubai’s hotel sector is expected to witness subdued growth rates as operators face strong competition.