The private office of His Highness Dr Sheikh Sultan bin Khalifa Al Nahyan announced today that Fairmont Hotels & Resorts (Fairmont) has been appointed to manage its 393-room luxury business hotel in Dubai, adding that an agreement for Fairmont to acquire a minority stake in the project has also been made.
William Fatt, Chairman and Chief Executive Officer of Fairmont sees the move as the first of many. ``With a well-established reputation as North America`s largest luxury hotel management company, Fairmont has been looking at strategic opportunities to grow the brand. As our key flagship in this international gateway, we feel that it is imperative that we consider our involvement in The Fairmont Dubai from both a management and a partnership standpoint.
``We see this project as the first step in a strategic alliance between the private office of His Highness Dr Sheikh Sultan and Fairmont to build and operate a number of luxury hotels in the region and other international markets.``
When concluded, the joint venture will be the first investment in the hospitality sector in Dubai, if not the United Arab Emirates, by an international hotel operator. Traditionally, international operators have entered the arena under a management contract, with the bricks and mortar ownership remaining with a local investor.
Designed in the form of an Arabic wind tower (Barajeel), consisting of four interlocking towers, The Fairmont Dubai will comprise 393 hotel rooms including 117 suites, among the largest number for a luxury business hotel in Dubai; state-of-the-art business facilities; residential apartments; three floors of office space; a world class spa and health club and 12 food and beverage outlets.
In acknowledgment to the hotel`s landmark location - opposite Dubai`s World Trade Centre and the area earmarked for the new convention center set to house the International Monetary Fund meeting in Dubai in 2003. Fatt said: ``We are looking forward to working with the Dubai`s Department of Tourism & Commerce Marketing, tourism partners, and neighbouring businesses and hotels to further consolidate Sheikh Zayed Road as a center for international business and conferences.``
The Fairmont Dubai will join such landmark properties as The Plaza in New York; The Fairmont Scottsdale Princess in Arizona and The Fairmont Chateau Whistler in British Columbia, each members of The Leading Hotels of the World; The Fairmont San Francisco; The Fairmont Banff Springs and The Fairmont Chateau Lake Louise, both castles in Canada`s Rocky Mountain national parks and Fairmont Le Chateau Frontenac in Quebec City.
Fairmont is a luxury hotel management company with 38 hotels in North America, Bermuda, Barbados, Mexico and now the United Arab Emirates. Canadian Pacific Hotels & Resorts Inc. holds a 67 per cent interest in Fairmont Hotels & Resorts with Maritz Wolff and Kingdom Hotels holding 16.5 per cent each.
His Highness Dr Sheikh Sultan bin Khalifa Al Nahyan is a member of the Royal Family of Abu Dhabi and a significant real estate investor on a global scale.
Canadian Pacific Hotels & Resorts Inc. is a wholly owned subsidiary of Canadian Pacific, a diversified operating company active in transportation, energy and hotels. Canadian Pacific shares are listed on the Toronto and New York stock exchanges under the trading symbol CP.
Kingdom Hotels is an international investment company with interests in luxury hotels and hotel management companies.
Maritz Wolff is an experienced, knowledgeable real estate group that has expanded its hotel ownership to include management companies.
Strategic Capital provided financial advisory services to the private office of His Highness Dr Sheikh Sultan bin Khalifa Al Nahyan with respect to this transaction.