Anantara The Palm Dubai is reportedly close to being sold for USD 280 million dollars (AED1.1 billion), sources familiar with the matter stated.
The luxurious Anantara The Palm resort has a private beach that stretches 400 meters (1,312 feet), offers breathtaking views of the Arabian Sea and has almost 300 rooms and villas.
According to a report by Bloomberg, Hotel owner Seven Tides is currently in discussions for a potential sale in partnership with Grant Thornton LLP
However, the report notes that there is no certainty regarding the finalisation of the deal. These discussions took place against the backdrop of Dubai’s thriving tourism sector as the city was recognized as a safe haven during the pandemic.
With its appeal to wealthy expats and tourists, Dubai’s hotels have been able to maintain an average occupancy rate of about 83% throughout the year through March.
According to property consultant CBRE Group, the average daily price in the first quarter reportedly reached AED783.8 (USD 213.45), the report said.
“Beach properties’ performance improved very rapidly after the pandemic and that’s driving considerable interest in the few hotels available to investors,” Taimur Khan, CBRE’s head of research said, Construction Week reported.
He added that “this is an opportune time for asset owners to exit as valuations look attractive with the strongest market we’ve had in years.”
Khan said that very little supply is coming to the market even in the top segment as investors anticipate that visitor numbers in Dubai could continue to rise as they have not returned to 2019 levels.
“Also few sites remain where a developer is able to build a beachfront five-star hotel,” he added.
Meanwhile, Dubai received 14.36 million international overnight visitors in 2022, growing 97% Y-o-Y from the 7.28 million tourist arrivals in 2021, according to the latest data published by the city’s Department of Economy and Tourism (DET). This is considered an exceptional growth in visitation that enables the city to surpass global and regional tourism recovery levels.