Gulf Construction Online - $870m hospitality venture

Real Estate

$870m hospitality venture

01 May 2017

A partnership of Schon Properties and Al Hamad Group is developing iSuites, comprising a massive 2,550 suites, close to the Expo 2020 site in Dubai, UAE.

UAE-based Schon Properties has joined hands with leading GCC construction company Al Hamad Group to develop iSuites – a Dh3.2-billion ($870 million) home-grown hospitality portfolio at a single site within Dubai Investment Park – close to the Expo 2020 venue.

iSuites is being jointly developed by both companies and will be managed by Schon Properties. Al Hamad Group will be responsible for construction via its contracting arm, Dubai Civil Engineering.

The entire complex includes 21 buildings – comprising 2,550 hotel suites, 52 restaurants and outdoor cafes, a 125,000-sq-ft shopping mall, surrounded by a man-made beach and a lagoon spread over five acres – all to be delivered before the historic Expo 2020 begins in the fourth quarter of 2020.

Al Hamad Group is investing equity to finance the construction of the project and acquire a substantial stake in the 2,550-unit development while Schon Properties will retain a substantial number of units for recurring income, while some inventory is offered to select investors for sale.

Designed by Swiss Design Bureau, the suites offer the smart stay concept and the building follows a modular design code. The design team’s innovation is expected to create a top-of-the-line development, says Schon Properties.

According to Schon, a part of iSuites’ inventories will be offered to investors that offers a high return on investment. Sales of iSuites are currently on as investors and buyers can now purchase a hotel suite or a service apartment that will be managed by international branded chain hotel operators and will offer buyers a higher income of 12 to 15 per cent per cent.

iSuites ... a complex of 21 buildings.

Nashat Sahawneh, the chairman of Al Hamad Contracting, says: “We are delighted to partner with Schon to create a unique hospitality landmark catering to the Al Maktoum Airport and Expo 2020 sites, the highest expected tourist growth area in Dubai. We are proud to be part of this massive development and see a great potential in this partnership.”

“Schon’s track record of developing such high-profile projects will add to our experience, and we are excited for the prospects of this development. The development of iSuites is a historic move by the UAE developer as it will help support the Dubai Government’s vision to create 140,000 hotel rooms for tourists and visitors to the emirate,” he adds.

According to Sahawneh, Al Hamad Contracting brings more than four decades of experience in constructing large projects.

Danial H Schon, the founder and president of Schon Properties, says: “Schon is very excited about this venture we have embarked upon. With the location gaining more traction day by day, we believe this plot is the perfect location for hospitality going forward.”

“We have found one of the most capable partners in Al Hamad Group, with their established construction track record of 45 years and history of building some of the tallest towers in the world,” notes Schon.

“Additionally, Al Hamad expertise in hospitality with the fact that they have built, and now own and operate over seven hotels in the region, including Media Rotana Tecom and Hilton Jordan Gate, is very beneficial to the success of the iSuites project,” he states.

“We are also happy to announce that the piling and shoring works of the project has already been completed while the main construction will commence in January. Al Hamad’s track record of on-time delivery over the last 45 years gives us the confidence that we will be ready to deliver the 2.6 million sq ft significantly before the Dubai Expo 2020,” he adds.

Schon says iSuites envisages smart modern living of functional and futuristic facilities. The full-serviced hotel apartments are targeting millennials interested in urban lifestyle hotel stays, small families coming to Dubai on a short-term corporate assignment or a pure family vacation. iSuites’ strategic location next to the world’s largest airport – Al Maktoum International Airport – assures high occupancy rates and secure income for investors.

The iSuites features over 52 restaurants and cafes boasting outdoor areas overlooking the Crystal Lagoon as part of a master-planned development. iSuites includes a 125,000-sq-ft retail promenade called the Laguna Centrale Mall.

These include urban themed cafes dedicated for entrepreneurs, kids play areas and nanny services. Bank, retail, spas, supermarkets, pharmacies, healthcare facilities, and shopping are available at the Laguna Centrale Mall to give full service to all guests for the hotel development.