Dubai financial crisis raises questions over high-profile hotels

Dubai's Palm hotels caught up in economic fears over debt repayment

Atlantis Dubai
Atlantis Dubai

The financial status of high-profile hotels on Dubai's Palm island is under scrutiny after state-owned developer Dubai World asked for permission to suspend its £35bn debt repayments.

Dubai World's property division Nakheel and development partner Kerzner International opened the Atlantis Dubai at a cost of £800m in September 2008 and only last week confirmed October 2010 as the opening date of a sister hotel, One & Only The Palm.

But Dubai World's request to postpone debt repayments for six months has led to global stock market fears over the financial stability of state-owned businesses in the emirate, according to reports in The Financial Times, which also scrutinises the Kerzner International connection.

In September, Atlantis Dubai director of business development for MICE Vipin Khattar told C&IT that enquiries in 2009 had "dropped off a bit due to what's happening in the global economy" and that some corporate bookings had been postponed until 2010 and 2011.

But he was optimistic about the hotel's future outlook, saying: "The enquiries are there and it's just a matter of confirming the business."

 

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