Aldar to invest $408 million to transform its hotel portfolio amid UAE tourism growth

Aldar Properties, Abu Dhabi’s biggest property developer, is investing Dh1.5 billion ($408 million) to transform its hotel portfolio amid a boom in the UAE’s tourism sector. As part of the strategy, Aldar is partnering with Hilton to operate the Eastern Mangroves hotel in the capital under the Waldorf Astoria brand with new premium rooms and suites, a new retail mix and enhancements to the promenade and marina planned. It is also revising its entire master plan at Yas Plaza to turn the six-hotel complex into a fully integrated resort that will be operated by IHG’s ‘Vignette Collection’ brand and renamed Straylight Yas, Aldar said on Wednesday, adding that it will be the "largest Vignette Collection resort in the world". Aldar’s hotel in Al Dhafra region, formerly known as Tilal Liwa, will also be part of the Vignette Collection brand, with new luxury suites and other upgrades. The collection is IHG’s newest luxury and lifestyle brand. “We see a tremendous opportunity to enhance and reposition our hotel portfolio to meet expected demand in the luxury segment while maximising the revenue potential of each asset,” Talal Al Dhiyebi, group chief executive of Aldar, said. The UAE has recorded robust growth in its tourism sector as travel demand continues to soar globally. Passenger traffic at the country's airports rose by more than 14 per cent in the first half of 2024 to 71.75 million, the latest data from the General Civil Aviation Authority shows. The number of arrivals at UAE airports in the first half of the year reached 20,274,694, while departures hit 21,090,750. The number of transit passengers was 30,391,978. Tourist arrivals in Abu Dhabi are also continuing to grow amid the opening of new Terminal 1 at Zayed International Airport and other attractions in the emirate. The Emirate's hotels welcomed a total of 2.4 million guests in the first five months of this year, Wam reported in August citing Statistics Centre Abu Dhabi data. Abu Dhabi's tourism body is planning to invest more than $10 billion in infrastructure as part of its new major tourism strategy, the chairman of the emirate's Department of Culture and Tourism, Mohamed Al Mubarak said in April. He added that the emirate also aims to grow the number of hotel rooms to 52,000, from the current 34,000, to support the Abu Dhabi Tourism Strategy 2030. As part of the hospitality transformation programme, Aldar is also undertaking a “major refurbishment and expansion” of the Nurai Island resort. As part of the plan, Nurai Island’s existing villas, food and beverage options, spa, gym, and beach club will be renovated. This will be followed by a major expansion of the island to cater to additional luxurious villas, a ballroom, a community hub, and a jetty. In Ras Al Khaimah, the company’s flagship hotels including Rixos Bab Al Bahr and DoubleTree by Hilton Resort and Spa Marjan Island will also be upgraded. In 2022, the company acquired the DoubleTree Marjan Island, as well as an adjacent beachfront development plot for Dh810 million and Rixos Bab Al Bahr hotel in Ras Al Khaimah in a Dh770 million deal. “Aldar’s ambitious plans for hospitality mirrors the significant investment under way across the business, guided by a strategy for transformational growth, which is driving rapid expansion and diversification alongside consistent upgrade and optimisation of Aldar’s assets and operating platforms,” the statement added. Last week, Aldar said it would establish four joint ventures to own and manage real estate assets worth more than Dh30 billion across Abu Dhabi as part of a new partnership deal with Mubadala Investment Company. As part of the deal, Mubadala and Aldar will create a Dh9 billion retail platform that will own Abu Dhabi’s existing retail assets including Yas Mall and The Galleria Luxury Collection. The two companies also aim to establish a joint venture to own Dh3 billion worth of income-generating real estate assets at Masdar City, focus on the development of two islands off Saadiyat Island and Yas Island and develop a Dh5 billion Grade A industrial logistics park in Al Falah, near Zayed International Airport.

Aldar to invest $408 million to transform its hotel portfolio amid UAE tourism growth

Partnership with Hilton will upgrade hospitality facilities at Eastern Mangroves, Yas Plaza, Tilal Liwa and Nurai Island, as well as in Ras Al Khaimah