Luxury Hotelier - April 2008 - (Page 19)

“As well as money, we’re using our waterfront development experience and expertise to raise awareness of issues that are specific to coastal development. We are already working to engage agencies such as the United Nations’ non-government organizations, thought leaders and other stakeholders to work with us on this,” he says. “As almost two-thirds of the world’s population lives in coastal communities, and a large amount of development is taking place along coastlines around the world, the long-term aim is to provide leadership in the development of sustainable coastal communities.” Joe Sita, chief executive of Istithmar Hotels, continues to head up the renamed Nakheel Hotels group. The Nakheel portfolio includes significant investments in Kerzner International Holdings Limited, the under-construction Trump International Hotel & Tower on Palm Jumeirah, and International Hotel Investments’ Corinthia Hotels International properties in Malta; St. Petersburg, Russia; Lisbon, Portugal; Tripoli, Lebanon; Budapest, Hungary; and Prague as owner and operator. The company has ownership of the Mandarin Oriental Hotel New York, the W New York-Union Square and other properties around the world. Other hotel investments include the development of a W Hotel in Bangkok and a W Retreat & Residences in Koh Samui, Thailand. Of considerable note here is that outside of Starwood Hotels & Resorts Worldwide, Nakheel is the largest owner of W-branded hotels in the world. As an example of Nakheel Hotels’ continued pursuit of its strategy to acquire both budget and luxury hotels in key gateway cities across North America, Europe and Asia, the division announced in February it entered into definitive agreements to acquire a 50-percent stake of One&Only Palmilla in San Jose del Cabo, Mexico. Based on a total enterprise value of $315 million, Nakheel acquired As almost two-thirds of the world’s population lives in coastal coast pla communities, and a large amount of development is taking place pro along coastlines around the world, the long-term aim is to provide leadership in the development of sustainable coastal communities. its stake from certain funds affiliated with the Whitehall Street Real Estate Funds, a series of real-estate opportunity funds sponsored and managed by Goldman Sachs. Existing joint venture partner, Kerzner International, will retain its 50percent stake. The two companies already had a very close relationship: Nakheel Hotels owns about 30 percent of Kerzner International and a number of existing joint ventures such as Atlantis, The Palm, on Palm Jumeirah and One&Only in Cape Town, South Africa. “One&Only Palmilla represents an important investment for us,” Mr. Sita said at the time the deal was announced. “We are constantly looking for opportunities to add value to our investments in companies such as Kerzner and this acquisition fulfills that strategy perfectly. Latin America is very important in the global tourism market and this deal marks our first entry into this lucrative region. We are always seeking to diversify our portfolio and add to our existing investments in North America, Asia and Europe.” Nakheel Hotels, as part of a joint venture with Malta-based IHI and the Libyan Foreign Investment Company, also purchased the Metropole building at Whitehall Place in London near Trafalgar Square for approximately $254 million earlier this year. Plans are to refurbish the 283-room hotel and the adjoining luxury apartments. On completion, CHI Limited will manage the property under the Corinthia brand. Rashid al Maktoum, prime minister and ruler of Dubai and vice president of the United Arab Emirates, revealed his vision to turn Dubai into one of the leading tourist destinations in the world. Already famous for its year-round sun and pristine beaches, its coastline was only 44 miles. His vision included establishing Nakheel as a realestate and tourism property development firm that would be responsible for building what are now iconic developments. The world’s largest man-made islands sit off the coast of Dubai: Palm Jumeirah, Palm Jebel Ali and Palm Deira. Heralded as the “eighth wonder of the world” and visible from the moon, this triumvirate has attracted its fair share of international acclaim. Made up of residences, hotels, marinas, shops and restaurants, Palm Jumeirah opened in December. Remarkably, 4,000 residential units sold in 72 hours when they went on the market in 2002, and hoteliers weren’t far behind when it came to buying in. The water-themed Atlantis, one of the island’s 25 hotels, will welcome its first guests this September, followed by Mövenpick’s Royal Amwaj. By the end of 2009, hotels from Trump International Hotel & Tower, Kempinski Hotels, ShangriLa Hotels & Resorts and W Hotels will nearly all be ready for guests. One of Nakheel’s most recent acquisitions is Cunard’s luxury liner, the QE2. Purchased from Cunard for $100 million, it is set to open on Palm Jumeirah as a posh floating hotel in 2009 following a major refurbishment. Billed as the largest man-made island in the world to date, Palm Jebel Ali will begin welcoming owners and guests in 2011. History Nakheel’s roots date back to the late 1990s, when H.H. Sheikh Mohammed bin www.LuxuryHotelier.com | April 2008 | Luxury Hotelier http://www.LuxuryHotelier.com

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Luxury Hotelier - April 2008 Contents Editor's Letter Inform Network Personalities Insight Properties Inspire Deliver Innovate Development Indulge Advertisers Index Editorial Index Source Listing Dossier

Luxury Hotelier - April 2008

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