A new jewel in the Nakheel Hotels crown
Nakheel Hotels is part of a joint venture that has purchased The Metropole Hotel at Whitehall Place in central London for approximately 932 million AED ($254 million).
Nakheel Hotels - the new name for Istithmar Hotels after Dubai World consolidated its hotel business under one banner to create a fully integrated hotel investment company - together with International Hotel Investments p.l.c. (IHI) and Libyan Foreign Investment Company (LAFICO) have entered an Agreement with the Crown Estate of the United Kingdom to develop the 400,000 square feet of accommodation. The development will be refurbished to provide a 283-bedroom deluxe five-star hotel and suite of adjoining luxury apartments.
The Crown Estate had last year declared its intentions to sell the former Metropole Hotel building and the adjoining 10 Whitehall Place, and had invited bids worldwide. The joint-venture submitted proposals for the project, along with offers from a number of the world's leading developers. The joint-venture between Nakheel Hotels, IHI, and LAFICO was ultimately chosen on the basis of the parties' proposals for the properties, as well as its development experience and financial capabilities to execute the project.
On completion, the management of the five-star hotel operation will be entrusted to CHI Limited to operate the property under the Corinthia brand.
Joe Sita, CEO Nakheel Hotels, said: «For the last two years we have been aiming to establish a presence in the London market and we are excited to find the perfect location with the perfect partners. The development is located in a prestigious site near London's Trafalgar Square and is a major asset to our growing portfolio of world-class hotels.»
Alfred Pisani, Chairman of IHI, said: «IHI and our partners, Nakheel Hotels and LAFICO, are very much looking forward to establishing a presence here in London as investors, developers and operators of the Corinthia Hotels brand. We are excited about our plans for the refurbishment of the Metropole Building as a five star luxury hotel, but above all we are eager to becoming part of London's vibrant hotel community and to working closely with The Crown Estate.»
Mustafa Khattabi on behalf of LAFICO, said: «IHI is an important investment partner and we are proud to invest alongside Nakheel Hotels in this exciting project. To be involved in such a prestigious redevelopment is truly an honour and we look forward to the challenge of restoring this once grand hotel, paying homage to the building's architecture.»
Charles Gardner, Head of Office Portfolio at The Crown Estate, said: «The bid stood out from a strong field of competitors with a proposal to refurbish the building rather than rebuild behind the existing façade. We were impressed by IHI's track record and are confident that they will restore the once grand Metropole Hotel to its former glory.»
