Dubai: Nakheel awards AED290.5mn deal for Deira Islands resort

UAE-based master developer, Nakheel, and Thai hotel group, Centara Hotels & Resorts, inked their AED500mn joint venture with a construction contract worth AED290.5mn to build a 601-room beachfront resort at Dubai’s Deira Islands.

The two entities have appointed Parkway International Contracting to deliver Centara Deira Islands Beach Resort Dubai – Centara’s first in the UAE – which is set to open in Q4 2020. A new hospitality concept for Dubai, the resort will significantly boost the emirate’s four-star accommodation in line with government tourism goals.

The contract, which takes Nakheel’s infrastructure and construction investment at Deira Islands to nearly AED8.8bn so far, was signed in Dubai by Nakheel chairman, Ali Rashid Lootah, and Suparat Chirathivat, Executive vice president – Corporate Development, Central Group, parent company of Centara Hotels & Resorts.

Mobilisation will begin immediately, with construction completion in Q4 2020.

Lootah said: “Nakheel continues to play a pivotal role in shaping and diversifying Dubai’s tourism offering with a AED27bn hospitality and retail expansion that supports the government’s vision. Our joint venture with Centara underlines our commitment to working with trusted international brands to bring new hospitality concepts to Dubai, and today’s crucial milestone brings this exciting new resort ever closer. I look forward to delivering one of Dubai’s most sought-after destinations for travellers from all over the world.”

Chirathivat said: “Centara is thrilled with the speed at which its joint venture with Nakheel is progressing and looks forward to opening Centara Deira Islands Beach Resort Dubai in 2020. Today is a key milestone of expansion for Centara as we continue to extend our upscale resort portfolio internationally.

“This is Centara’s first hotel in Dubai, and the UAE, and represents our arrival in a key gateway city in the Middle East. We believe that the unique design and service of Centara Deira Islands Beach Resort Dubai will offer unforgettable holiday experiences to guests. With Nakheel’s development expertise and Centara’s record of delivering and inspiring extraordinary guest experiences, we will create a unique resort that surprises and delights guests for years to come.”

Located on a prime beachfront spot at Nakheel’s Deira Islands waterfront city, the resort will also be managed by Centara, whose growing portfolio already includes over 12,000 keys across 60 hotels and resorts in Asia, the Indian Ocean, and the Middle East.

The family-centric resort will feature a waterpark, multiple restaurants, kids’ club, spa, fitness centre, and business facilities. The 601 sea-view and city-facing rooms cover a range of categories, with an emphasis on family-sized accommodation – 114 rooms are specifically for families, covering 42sqm. There are also rooms for people with special needs, standard rooms, deluxe rooms, suites, and 111sqm duplexes.

Nakheel’s partnership with Centara is the developer’s second international joint venture at Deira Islands. Construction of the first, an 800-room, AED670mn beachfront resort with Spain’s RIU Hotels & Resorts, is under underway, with anticipated completion in 2020.

Nakheel has invested AED8.8bn in infrastructure and construction contracts at Deira Islands so far, and recently announced a contract for nearly AED450mn to build a 12-lane bridge connecting the islands to the Dubai mainland.

Deira Islands will transform ‘Old Dubai’ into a world-class hub for retail, tourism, living and leisure, and will add 40km, including 21km of beach, to Dubai’s coastline. The coastal city is expected to have a population of 250,000 and to create 80,000 jobs.