Business | Tourism
Nakheel Hotels to pause in US investments
As Nakheel Hotels celebrated the opening of the Fontainebleau Miami Beach resort this weekend, Gulf News has learned that the company is planning a "pause" in US hotel investments as it eyes markets in Asia and the Middle East for its future developments.
- By Jane Ferguson, Staff Reporter
- Published: 23:41 November 15, 2008
- Image Credit: AP
- From left: model Marisa Miller, Fontainebleau Resorts owner Jeffrey Soffer, model Heidi Klum, Fontainebleau Resorts executive chairman Don Soffer and model Doutzen Kroes cut the ribbon at the opening of the Fontainebleau Miami Beach Hotel.
Miami: As Nakheel Hotels celebrated the opening of the Fontainebleau Miami Beach resort this weekend, Gulf News has learned that the company is planning a "pause" in US hotel investments as it eyes markets in Asia and the Middle East for its future developments.
Following the announcement in April that Nakheel Hotels had bought a 50 per cent stake in Florida's iconic Fountainebleau Miami Beach Hotel, the grand opening of the newly renovated resort was celebrated by dignitaries, businesspeople and a host of celebrities on Friday night.
Nakheel Hotels, a business unit of Nakheel which is part of the Dubai World holding company, invested $375 million with Fontainebleau Resorts, LLC, a privately-held, Las Vegas-based resort developer, for a 50 per cent interest in the famous hotel.
In April, when the Miami investment was announced, Nakheel Hotels were keen to stress their strategic interest in investing in the US.
"Miami, as one of the US' major gateways, has been a key target, which we are pleased to have now gained," said Joe Sita, Nakheel Hotels CEO, in a statement to the press.
"However, at Friday night's gGrand opening, he told Gulf News that, although the US has always been a key target, the location may no longer lay claim to Nakheel Hotels' top focus.
"We still have a project in LA and once the project gets going then our intention is to pause as we will have achieved out strategy," Sita said.
"We had always said once we have invested in the gateway cities [in the US] our goal will be achieved. Now we are looking more towards Asia and the Middle East; it is important for us to get a good geographical spread."
Responding to a question about whether the company is considering a larger UAE-based business model in partnership with carriers such as Emirates, Sita said there were no solid plans as yet, but it was something he would like to see.
"Atlantis does partner with Emirates in providing packages to Europe and the Middle East, but we are a hotel owner more than an operator," said Sita.
Joint venture: Plans for Dubai
Gulf News has learned that the two companies are planning to build a hotel together in Dubai.
CEO of Nakheel Hotels, Joe Sita, told Gulf News at the grand opening of Nakheel Hotels' joint venture with Fontainebleau Resorts, "Fontainebleau are planning one [hotel] in Dubai and we have signed a letter of intent."
"We have also commissioned market researchers, however the development is in the early stages of planning," he added. The planned hotel resort would be built on the crescent of the Palm Jebel Ali.
Plan to take advantage of crisis
Miami Nakheel Hotels plan to take advantage of the current global credit crisis in order to develop their portfolio of investments around the world.
Speaking to Gulf News CEO of Nakheel Hotels, Joe Sita, said, "The crunch will provide interesting opportunities next year," Sita said adding the present deal was struck late last year.
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