Dubai: One of the emirate's oldest hotels, the Metropolitan, is to be demolished to make way for a glitzy hospitality complex and a Las Vegas-style theatre valued at Dh4.87 billion.
Khalaf Al Habtoor, chairman of Al Habtoor Group, said on Tuesday that construction will commence in June and be completed in October 2015.
"Parting with the Metropolitan Hotel, our first hospitality venture, is not easy as it is filled with great memories, but I always believe in looking forward," Al Habtoor said.
"The tourism industry in the UAE and Dubai is constantly and steadily growing and we have to be prepared to cater for the growing need of its visitors and residents alike."
Luxury brands
The 34-year-old Metropolitan Hotel along with the cinema complex and residence building, Habtoor House 3, will be demolished to make way for the development, which will be named Habtoor Palace. It will host three international luxury hotel brands.
Al Habtoor said he expected the investment to serve as a vote of confidence in the emirate.
"An investment of this magnitude will encourage other like-minded businessmen to regain faith and will definitely send a very strong message to the national and international communities that will help stimulate foreign direct investments from institutions and individuals alike," he said.
The three hotels will hold 1,616 rooms, 50,000 square feet of banqueting and meeting space, a 1,000-seat broadway-style theatre, complete with water fountains and a moving stage, a 400,000 square foot landscaped garden, and a sports academy with 12 tennis courts.
According to Mohammad Al Habtoor, Vice Chairman and CEO of the Al Habtoor Group, the company is in talks to bring in internationally renowned food and beverage brands from New York and London.
Restaurants
The hotel complex will hold around 20 restaurants, cafes and bars.
"We are also going to have a theatre that will hold a water show with a moving stage and 150 actors and dancers.
"It will host shows like those seen in Las Vegas. This type of theatre will be the first in the Middle East," Mohammad said.
The Al Habtoor Group is also in talks with celebrity theatre director Franco Dragone, who is known for his work with Cirque du Soleil, about future stage productions at the theatre.
Some of the staff now working at the hotel will be moved to the Al Habtoor Group's other properties across the UAE and Lebanon.
"We will have to let go some of our staff, but we don't know how many as yet," Khalaf Al Habtoor said.
Project finance
The project will be funded with the company's own resources.
According to Al Habtoor, their Metropolitan Hotels, including their property on Shaikh Zayed Road, enjoy occupancies above 80 per cent.
Construction is underway for their property on the Palm Jumeirah, which will be completed in 18 months, Al Habtoor said.
