Alwaleed Investment Group has confirmed its newly launched hospitality unit had acquired its first hotel.

The 180-room Splendid Hotel, situated in the Oud Metha area of Dubai, will be renamed Alwaleed Palace Hotel Apartments following the purchase by the United Arab Emirates-based investment powerhouse.

The group aims to acquire luxury hotel projects with high investment feasibility to meet the growing needs of the service buildings, said a senior official.

“Our aim through AlWaleed Hospitality is to focus on providing the best levels of luxury services to our customers,” Mohammed Abdul Razak Al Mutawa, the chairman of the Al Waleed investment board explained.

The project is located near the Lamcy shopping centre.

The deal may be the first of many, with AlWaleed recently outlining plans to operate 500 rooms in Dubai by the end of 2014, suggesting at least two more purchases could be on the horizon.

The Al Barsha area of Dubai has been mooted as a second area of growth for the investment body.

“Our hotel services specialised in the high quality standards reflects a new experience in the hospitality industry at the level of the local market in Dubai,” concluded Al Mutawa.