Dubai: Investors get another shot at buying the Palazzo Versace hotel in Dubai, with the property coming up for an auction a second time in less than 3 months.
The base price set by the auction remains at Dh1.34 billion for the hotel, which is located in the Al Jaddaf area and has indeed been one of the signature developments there alongside the likes of the D1 tower.
Potential investors have just over 7 days to make up their minds and make a bid for the Palazzo Versace, which over the years has been one of Dubai’s most popular deluxe hospitality destinations.
It was in May that the property first came up for auction and immediately pulled out before the end of the bidding period. No reasons were given as to why the pullout happened at the time. (Through recent years, the hotel had been talked about as a potential buyout target, but nothing ever materialised.) Now, the development makes another try, again at a time when existing hotels, especially upscale ones, in the UAE have become prized assets with investors looking for commercial real estate. This is happening in tandem with the launch of more new hotels in Dubai, Ras Al Khaimah, Abu Dhabi and elsewhere in the country.
What will a new Palazzo Versace owner get?
A winning bid will land the new buyer with a property that takes up an impressive 101,342.54 square meters. Within the hotel, there are 65 suites with a city view and another 65 overlooking the Creek.
Part of any winning bid includes four restaurants, two swimming pools and the gym. (The development also includes residences that are not part of the auction.) At a Dh1.34 billion base price (and with minimum increments of Dh200,000 thereafter), the auction should garner some serious interest.
Any new buyer will have the comfort of owning a destination hotel that's already built up an impressive track record. Occupancy levels through peak season remains on par with some of the numbers put up by the city's other luxury hotels, industry sources say.
