R Holding/ R Hotels has secured fund worth AED 204 million from Commercial Bank of Dubai (CBD), to back the development of its recently announced property in Palm Jumeirah.
The fund is part of R Hotel’s AED 500 million hotel investment at The Palm, which is set to open on the last quarter of 2016. Located at The East Crescent of The Palm, the new four-star resort and spa will feature 259 rooms, and leisure and wellbeing facilities.
The first phase of the construction will start on the first quarter of 2015 and the group targets fourth quarter of 2016 as its completion date.
Sumair Tariq, Managing Director of R Hotels, noted: “By capitalising on strategic hotel locations in the UAE, R Hotels is confident on the stable return of investments of all our projects in the pipeline, especially our property in Palm Jumeirah. We are pleased to have CBD on board, to guarantee that the project is backed by an established financial institution.”
Alain Renaud, General Manager Corporate, Commercial & Investment Banking for Commercial Bank of Dubai, said: “The hospitality market is witnessing increased growth in the UAE, and CBD is committed to supporting the sector’s development given its strategic importance to the UAE’s economy and its contribution to GDP growth. In recent years R Holding/ R Hotels has emerged as a major participant in the hotel sector and we are delighted to support the company in the development of its prestigious new project in Palm Jumeirah.”
R Hotels currently owns and manages four properties in the UAE which are Ramada Hotel and Suites Ajman, Ramada Beach Hotel Ajman, Ramada Downtown Dubai, and Hawthorn Suites by Wyndham in Jumeirah Beach Residence. The group will open its fifth hotel in Jumeirah in Q2 2015, and the said project at The Palm will be its sixth property in the UAE.
Tariq added: “Our properties in Dubai and Ajman are all doing well in the market and we are poised toward growing our portfolio, with a goal to be one of the fastest-growing hospitality management companies in the Middle East.”
About R Hotels
R Hotels is the hospitality management division of the Ajman-based R Holding. Established in 2008, the company presently owns, operates and manages four hotels across the UAE – Ramada Hotel and Suites Ajman, Ramada Beach Hotel Ajman, Ramada Downtown Dubai and Hawthorn Suites by Wyndham. R Hotels aims to grow its business by developing and acquiring new hotels in key locations, and establishing suitable franchise affiliations. The company takes pride in its professional and efficient management team and hotel staffs, and confirms its positive stature in the hospitality sector with its high-quality accommodation and facilities, matched by top notch service.