Abu Dhabi: Marriott International, the US-based hospitality chain, signed a management agreement with Al Forsan Holding, a real estate company, to open a five-star hotel in Abu Dhabi later this year.

The 400-room hotel will be located next to the Al Forsan International Sports Resorts, and will also house seven dining outlets and loungers, a spa, a fitness centre, and a pool, among other facilities.

The property will mark Marriott’s second hotel in Abu Dhabi, with the first one, Marriott Downtown set to open in September 2016.

“Marriott Al Forsan Hotel has a unique advantage as it is one of the only hotels in the country that will also offer the guests with an adventure tourism opportunity due to its strategic location next to the Al Forsan International Sports Resort,” said Saif Al Hajeri, chairman of Al Forsan Holding.

He said the plan to add a hotel within Al Forsan Village was part of the initial design phase of the project.

Hotels in Abu Dhabi have been facing challenges recently, with average room rates falling around 10 per cent in the first five months of 2016 compared to the same period in 2015. This is primarily due to lower demand from the government and corporate segments as falling oil prices drag spending down.