KM Properties launches first Sharia-compliant hotel fund

KM Properties, a division of the UAE-based Al Rostamani Enterprises, announced the launch of a US $2.3 billion, Sharia-compliant, real estate development fund to develop a new-concept hotel chain in May.

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By  Sarah Campbell Published  June 17, 2006

KM Properties, a division of the UAE-based Al Rostamani Enterprises, announced the launch of a US $2.3 billion, Sharia-compliant, real estate development fund to develop a new-concept hotel chain in May. The hotel chain, which will also be Sharia-compliant, is in the advanced stages of business development, and will include a four-star brand tier, alongside a premium tier and a five-star offering. KM Properties confirmed that the new hotel chain, expected to comprise 30 properties over an eight-year development period, is planning to introduce 50% of its total room stock in the four-star category, with five-star and deluxe at a 30:20 ratio, respectively. The three product groups will each carry a stand-alone brand name and be distinct in product proposition, including significant elements that have not been addressed or targeted by existing hotel flags, KM Properties claims. The first hotel and serviced apartment project will open in Dubai in 2008, following an 18-month, $290 million investment. Its 700 rooms and suites will be built to a top-end, four-star specification. A hotel operator will be brought in to operate independent properties on behalf of owners throughout the Middle East and Asia. Saudi Arabia, Morocco, Turkey, Malaysia, and India are all earmarked as prime entry markets during the first 12 months. To kick-start this portfolio, KM Properties has already signed three management agreements, in addition to the own-brand Dubai property, with another seven in advanced stages of negotiation.

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