Dubai Holding, an investment firm owned by the emirate’s ruler, is in talks to sell the local branch of Nikki Beach resort, according to people familiar with the matter, as the city cashes in on an influx of tourists and newcomers.
(Bloomberg) —
Dubai Holding, an investment firm owned by the emirate’s ruler, is in talks to sell the local branch of Nikki Beach resort, according to people familiar with the matter, as the city cashes in on an influx of tourists and newcomers.
Nikki Beach Resort & Spa Dubai, a luxurious beach club that includes 117 rooms, 15 ultra-deluxe villas and 63 private residences on the Pearl Jumeira waterfront development, is being valued at about 800 million dirhams ($218 million) in the discussions, the people said, asking not to be identified because the talks are private.
Nikki Beach is working with Jones Lang LaSalle Inc. on the potential sale and the property consultant is arranging talks with interested parties, the people said. Deliberations are ongoing and there is no certainty a deal will go ahead, they said.
A representative for Dubai Holding wasn’t immediately available to comment. Representatives for Nikki Beach and JLL declined to comment.
Famous for its raucous Miami and Saint Tropez beach clubs, the party-happy brand was set up in 1998 by entrepreneur Jack Penrod. It now operates 11 beach clubs, five hotels and resorts from Thailand to Ibiza, as well as a fashion division. Nikki Beach Resort & Spa Dubai opened in 2016 and notched 85% occupancy rates in its first year, according to the company.
For Dubai Holding, owned by Sheikh Mohammed bin Rashid Al Maktoum, a deal would be the latest in a series of sales by the state-backed conglomerate. Last year, the company sold a 50% stake in the Dubai Creek Harbour project to Emaar Properties PJSC as part of a 7.5 billion dirham ($2 billion) deal. Dubai Holding is also behind Tecom Group, which in June raised $454 million in an initial public offering.
Dubai’s tourism industry has been on a tear since it emerged as a safe haven during the pandemic, escaping much of the geopolitical and economic uncertainty elsewhere in the world. Hotel occupancy rates in the emirate averaged about 73% last year and the average daily room rate reached $188.70, according to property consultant CBRE. Revenue per available room — a key measure of profitability — rose to $137.40 even as the city added more rooms.
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Atlantis The Royal — Dubai’s second Atlantis resort — last month became the latest addition to the city’s burgeoning hospitality scene. The hotel opened with a VIP concert by superstar Beyonce who performed for a reported $24 million.
Dubai currently has around 148,000 hotel rooms with 13,000 more to be completed this year, according to a November report by Jones Lang LaSalle.
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