Dubai’s ICD Acquires Stakes In Three Hotels

Investment Corporation of Dubai, the investment vehicle of the Dubai government, has acquired stakes in three global hotel brands, a statement said.

The fund’s latest acquisitions include the W Hotel in Washington D.C., a majority stake in the Mandarin Oriental in New York and a minority stake in the One&Only in Cape Town, South Africa.

The value of the deals was not disclosed.

The transactions strengthen the hospitality portfolio of ICD, which also has holdings in top Gulf brands Emaar Properties, Emirates NBD and Emirates.

“Building on our strong domestic growth in the hospitality and tourism sector, this strategic move reinforces ICD as a serious contender in the global luxury hospitality space,” said Mohammed Al Shaibani, executive director and CEO of ICD.

“ICD has recently made significant progress in developing its hospitality presence domestically, supporting the sustainable economic growth of Dubai. The acquisition of luxury hotels in prime global destinations complements ICD’s existing portfolio.”

He added that the fund will continue to be on the lookout for similar additions to its portfolio in the future.

ICD’s other recent acquisitions in the hospitality sector include the purchase of the Atlantis Hotel from a unit of Dubai World last year.

The investment arm also took a significant equity interest in Kerzner International Holdings Limited (KIHL), the international operator of the One&Only, Atlantis and Mazagan brands.

Following the deal, ICD announced that it was building the Royal Atlantis Resort and Residences, a new $1.5 billion luxury resort on Palm Jumeirah in partnership with Kezner International. The project is scheduled to be completed by 2018.

Dubai’s sovereign wealth fund is also undertaking the One Za’abeel project, estimated to cost Dhs2.5 billion, which will include 550 residential units, two hotels and 130 hotel apartments.

Located between the Dubai World Trade Centre and Za’abeel Park, it will consist of two towers (residential and commercial) linked by a suspended bridge.