RAK Hospitality sells Rixos Bab Al Bahr Ras Al Khaimah to Aldar Properties for $209.6mn
Transaction also includes development rights for an additional 250,000sqft of GFA for residential and commercial use
RAK Hospitality has confirmed the sale of one of its hotel assets, the 715-key, all-inclusive Rixos Bab Al Bahr in Ras Al Khaimah, for a total of USD$209.6 million, to Aldar Properties, through its Aldar Investment business.
As part of the transaction, Aldar Investment has also secured development rights for an additional 250,000sqft of gross floor area for residential and commercial use, a statement added.
Alison Grinnell, RAK Hospitality Holding Chief Executive Officer, commented: “RAK Hospitality Holding, through its hotel portfolio subsidiary, is further delivering on its growth and diversification strategy. Rixos Bab Al Bahr has demonstrated huge resilience during the pandemic and has emerged stronger with a unique ultra-all-inclusive offering.
“Following Aldar’s recent acquisition of Al Hamra Mall we are delighted to further strengthen the partnership through this investment in Ras Al Khaimah’s hospitality sector. Aldar’s investment in the Emirate contributes to enhancing the hospitality experiences for our tourists and residents, adding to the Emirate’s destination appeal. We remain focused on a local approach to investing across a diversified range of asset strategies, supported by a global perspective,” she added.
Opened in 2014, Rixos Bab Al Bahr features 715 keys, offering guests with an ultra-all-inclusive experience including luxurious accommodation, diverse choice of upscale dining options, and a host of recreational activities and entertainment.
Situated on Al Marjan Island, Rixos Bab Al Bahr is an established staycation destination in Ras Al Khaimah, benefitting from solid occupancy levels and growth potential. The RAK based Integrated Hospitality company said that the sale reflects RAK Hospitality Holding’s track record of creating high-value assets that are attractive to inbound investments from reputed investors.
Commenting on the transaction, Jassem Busaibe, Chief Executive Officer at Aldar Investment said: “Ras Al Khaimah continues to rise in popularity as a tourist destination as international borders open and leisure travel returns. We expect further upside as the Emirate executes on its strategy to become the regional leader in environmentally conscious tourism, attracting more than 3 million annual visitors by 2030.
“With that in mind, we are pleased to add Rixos Bab Al Bahr to our portfolio of income-yielding hotel and hospitality assets,” he concluded.
