Schon, Al Hamad to set up $870m hospitality venture
DUBAI, 14 days ago
UAE-based Schon Properties has joined hands with leading GCC construction company Al Hamad Group to develop iSuites – a Dh3.2-billion ($870 million) home-grown hospitality portfolio at a single site within Dubai Investment Park – close to the Expo 2020 venue.
The iSuites is being jointly developed by both companies and will be managed by Schon Properties. Al Hamad Group will be responsible for construction via their contracting arm, Dubai Civil Engineering.
The entire complex includes 21 buildings – comprising 2,550 hotel suites, 52 restaurants and outdoor cafes, 125,000 sq ft shopping mall, surrounded by a man-made beach and a lagoon spread over five acres– all to be delivered before the historic Expo 2020 begins in the fourth quarter of 2020.
Al Hamad Group is investing equity to finance the construction of the project and acquire a substantial stake in the 2,550-unit development while Schon Properties will retain a substantial number of units for recurring income, while some inventory is offered to select investors for sale.
Designed by Swiss Design Bureau, the suites offer the smart stay concept and the building follows a modular design code. The design team’s innovation is expected to create a top-of-the-line development, said a statement from Schon Properties.
The branded hotel apartments will be managed by international hotel operators to offer greater comfort to visitors.
According to Schon, a part of the iSuites inventories will be offered to investors that offers a high return on investment.
Sales of the iSuites are currently on as investors and buyers could now purchase a hotel suite or a service apartment that will be managed by international branded chain hotel operators and offers buyers a higher income of 12 to 15 per cent per cent, it stated.
Nashat Sahawneh, the chairman of Al Hamad Contracting, said: "We are delighted to partner with Schon to create a unique hospitality landmark catering to the Al Maktoum Airport and Expo 2020 sites, the highest expected tourist growth area in Dubai. We are proud to be part of this massive development and see a great potential in this partnership."
"Our 45 years’ expertise with building some of the tallest towers in world and iconic projects will prove integral to delivering a landmark project in this crucial location," he remarked.
"Schon’s track record of developing such high-profile projects will add to our experience, and we are excited for the prospects of this development. The development of iSuites is a historic move by the UAE developer as it will help support the Dubai Government’s vision to create 140,000 hotel rooms for tourists and visitors to the emirate," he added.
According to Sahawneh, Al Hamad Contracting brings more than four decades of experience in constructing large projects.The company, based in the UAE with an operational footprint across the GCC, has grown to become a group of large diversified businesses with more than 20 companies active in construction, real estate and industrial sectors.
Danial H Schon, the founder and president, said: "Schon is very excited about this venture we have embarked upon, iSuites. With the location gaining more traction day by day, we believe this plot is the perfect location for hospitality going forward."
"We have found one of the most capable partners in Al Hamad Group, with their established construction track record of 45 years and history of building some of the tallest towers in the world," noted Schon.
"Additionally, Al Hamad expertise in hospitality with the fact that they have built, and now own and operate over seven hotels in the region, including Media Rotana Tecom and Hilton Jordan Gate, is very beneficial to the success of the iSuites project," he stated.
According to him, the combination of Al Hamad’s experience and Schon’s multi-disciplinary experience will add to the Dubai landscape.
"This crucial partnership will ensure an active participation by Al Hamad Contracting – who are now our partner in development and holds a stake in the overall progress of the project and guarantee smooth construction, development and delivery with the units. This partnership now cements the deal and ensures on-time delivery and the best quality,"stated Schon.
“We are also happy to announce that the piling and shoring works of the project has already been completed while the main construction will commence in January. Al Hamad’s track record of on-time delivery over the last 45 years gives us the confidence that we will be ready to deliver the 2.6 million sq ft significantly before the Dubai Expo 2020,” he added.
Schon said the iSuites envisages smart modern living of functional and futuristic facilities. The full-serviced hotel apartments are targeting millennials interested in urban lifestyle hotel stays, small families coming to Dubai on a short-term corporate assignment or a pure family vacation. iSuites strategic location being next to the world’s largest airport – Al Maktoum International Airport – assures high occupancy rates and secure income for investors.
The iSuites features over 52 restaurants and cafes boasting outdoor areas overlooking the Crystal Lagoon as part of a master-planned development. iSuites includes a 125,000-sq-ft retail promenade called the Laguna Centrale Mall.
These include urban themed cafes dedicated for entrepreneurs, kids play areas and nanny services available for all guests. Bank, retail, spas, supermarkets, pharmacies, healthcare facilities, and shopping are available at the Laguna Centrale Mall to give full service to all guests for the hotel development.
iSuites – a lucrative investment product – will help contribute to the economic growth of the UAE and help realise the country’s vision 2021 and 2030.
Schon Properties, which will retain a significant portion of the 2,550 units in iSuites, will offer a limited number of units to the public to purchase and benefit from a higher return on investment.
Dubai, which has 100,000 hotel rooms and hotel apartments, will need 40,000 new hotel rooms and hotel apartments within less than 46 months, as the clock is ticking for Expo 2020 – the largest exposition to take place in the history of the Middle East – that the city of Dubai will proudly host.-TradeArabia News Service