Abu Dhabi: Rotana Hotel Management, the UAE-based hotel chain, announced it will no longer be managing Al Bustan Hotel and Al Murooj Hotel in Dubai. The management of both hotels will be transferred to the property owner, Dubai International Real Estate (DIRE).

According to a statement issued by Rotana, Dubai International Real Estate has decided to take over the management of both hotels under its own management company, thereby terminating the agreement with Rotana to manage the two hotels.

Thus, effective January 1, 2017, both hotels will no longer be under Rotana’s management or brand.

The statement said this was a mutual decision between Rotana and Dubai International Real Estate, and both parties are now working together to ensure a seamless transition. The statement did not provide details on why both parties agreed to terminate their relationship.

An email sent by Rotana to members of its frequent guest programme, said the Rotana Rewards benefits will no longer be applicable at Al Bustan or Al Murooj after December 31, 2016.

Rotana had earlier said it was planning to expand its presence in the UAE. In February 2016, the hospitality group said it plans to open nine new hotels in the country over the next five years. These include four new properties in Abu Dhabi and five in Dubai, adding a total of 3,598 rooms.

The new hotels will include five under the Rotana Hotels and Resorts brand, three under the Arjaan Hotel Apartments by Rotana brand, and one under the affordable brand, Centro by Rotana.