Nakheel adds 252-room hotel to its Al Khail Avenue project in Dubai

Master developer Nakheel has added a 252-room hotel to its Al Khail Avenue project as it appointed UAE-based Dhabi Contracting for the construction work.

With the Dh1.5 billion deal, construction of the retail, dining and entertainment development is expected to start in October. Construction of the 2 million square foot Al Khail Avenue is expected to be complete in the first quarter of 2019.

The 18-storey hotel will be attached to Al Khail Avenue mall with access to its 350 shops. Nakheel declined to give details about the hotel.


Al Khail Avenue has more than 1.2 million square feet of leasable space, of which around 70 per cent is booked, according to Nakheel. These include a 14-screen Reel Cinemas and a Waitrose supermarket. There will also be a parking space for 4,000 cars.

The project is located on Al Khail Road in Dubai near the Jumeirah Village Triangle community, which has around 13,000 villas, townhouses and apartments.

The rental yields from retail units are expected to decline this year, according to a second report market report from consultancy JLL.

Next year, the Dubai Art Centre in Barsha and Sustainable City Mall would increase the total leasable area in the retail sector in Dubai by 159,000 square metres to 3.5 million square metres, according to JLL. Dubai is expected to finish the year with 3.4 million square metres of leasable space.

In the hotel space, Dubai is expected to have 79,709 hotel rooms next year, up from 74,809 rooms this year, it said.

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