The Shangri-La Hotel, Dubai has been acquired for 1.1 billion United Arab Emirati dirhams, equivalent to almost $300 million.
The 302-room hotel on Dubai’s Sheikh Zayed Rd. sold for approximately 3.64 million Emirati dirhams ($911,000) per key.
It is the first prominent hotel in Dubai to change hands since the start of the conflict between the U.S. and Iran earlier this year.
The Strait of Hormuz, the center of that conflict, is the border between the UAE and Iran.
Gulf Business reports the buyer is local investor AHS Properties, while The National reports the seller is Mismak Properties Co., LLC, a division of First Abu Dhabi Bank.
According to CoStar, the 42-floor luxury hotel, which opened in July 2003 and was renovated in 2018, previously changed hands in January 2020. At the time, it was sold for 700.2 million Emirati dirhams by Al Jaber Group to an undisclosed buyer via auction.
The deal was funded through a mix of debt and equity, according to The National’s reporting, which quotes AHS’ founder and CEO, Abbas Sajwani, the son of the chairman of developer DAMAC Properties, Hussain Sajwani.
Dubai’s hotel industry has been in the news recently as the city suffered a big dip in travel and hotel occupancy following the start of the U.S. war with Iran in late February. As a result, several of its most notable luxury hotels closed to undergo large-scale renovations, reported by CoStar News.