BrazilCBRE advises on acquisition of Doubletree by Hilton in Marjan Island
Abu Dhabi’s biggest developer Aldar Properties has expanded its hospitality and leisure portfolio in the UAE with the acquisition of Doubletree by Hilton in Marjan Island and an adjacent beachfront development plot for a total consideration of AED 810 million ($220 million). CBRE provided buy-side deal advisory services.
DoubleTree by Hilton in Al Marjan Island is a 5-star resort under a management agreement with Hilton.
The property, which launched in 2014, is located on the first section of Al Marjan Island, a growing tourism hub and staycation destination in Ras Al Khaimah.
“The mature nature of this five-star asset complements our existing suite of properties in Ras Al Khaimah which continues to represent a robust hospitality and tourism market with strong growth potential in line with the Emirate’s aim to attract 3 million visitors annually by 2025,” said Jassem Busaibe, CEO at Aldar Investment.
During the transaction, Busaibe and his team was supported by a number of M&A consultancies, including CBRE, which provided valuation and technical due diligence advisory services. Other dealmakers were at the time of writing unknown.
Commenting on the support, Ali Manzoor, Head of Hotels & Tourism at CBRE, said: “We are pleased to have been able to support Aldar with this initiative. After having seen sustained investment within Ras al Khaimah’s hospitality market over the past decade, it is great to see a transaction like this. As the market continues to develop, we will continue to see pockets of value emerge outside the traditional hubs of Abu Dhabi and Dubai.”
Under the wings of its new owner, Doubletree by Hilton expects to benefit from the “complementary value proposition” Aldar Properties can offer, and its expertise in running high-end hotels. Busaibe: “While the acquisition is both value and yield accretive, we still see room for additional upside by leveraging our scale and deploying our asset management capabilities effectively as we continue to grow and transform our platform at an accelerated pace.”
DoubleTree by Hilton in Al Marjan Island has a gross floor area of 67,000 m2 and its amenities include eight restaurants, six bars, one nightclub, male and female spas, eight pools, a kids club and aquapark, a private beach, a gym, one ballroom, three meeting rooms and a parking area.
The acquisition is Aldar Properties’ third investment in Ras Al Khaimah this year, following deals to buy Al Hamra Mall and Rixos Bab Al Bahr in February and April, respectively.
Jahed Rahman, CIO at Aldar Investment said: “The acquisition adds to the significant investment already made in our recurring income business this year and we continue to assess and pursue opportunities to deploy further capital as we ramp up the execution of our growth strategy and drive value across our platform.”
