Tuesday, Apr 27, 2010
(Adds detail, closing share price.)
DUBAI (Zawya Dow Jones)--The chairman of Emaar Properties (EMAAR.DFM) said Tuesday Burj Khalifa tower is now 90% open as the Dubai-based company officially inaugurated the first Armani Hotel in the world's tallest building.
"The Burj Khalifa is 90% open," Mohamed Alabbar said at the hotel's opening ceremony of the world's first Armani Hotel in Dubai. "Without a doubt it will have a positive impact on the company (Emaar) for years to come," Alabbar said referring to the hotel launch.
Covering six floors of the $1.5 billion Burj Khalifa, the Armani Hotel Dubai will have 160 guest rooms ranging from 4000 U.A.E. dirhams ($1008) a night to AED40,000.
"The hotel will be a referral point for luxury hospitality projected in the future, and brings global attention to Dubai and Burj Khalifa," Alabbar said.
Armani and Emaar signed the agreement to open the Armani Hotel Dubai in 2005. Armani Hotel Dubai's opening will be followed by the launch of Armani Hotel Milano in Italy; Armani Resort in Marrakech, Morocco; and Armani Residences villas in Marassi, Egypt.
"He wanted me and in short, I wanted him as well," Italian designer Giorgio Armani said at the opening ceremony. Both Alabbar and Armani shrugged off concerns about opening the hotel amid a property downturn in the emirate.
"When you build projects like this, they're built for hundreds of years," Alabbar said. "Cycles come and go."
Last week, Emaar said its first-quarter net profit more than tripled from the year earlier as revenue soared on the developer's hospitality and retail units. Profit for the period rose to AED760 million from AED237 million a year earlier.
Earlier Tuesday, ratings agency Moody's Investor Services said the outlook for Emaar is negative, citing execution risks that largely relate to the sale of unsold units in Dubai and in international markets, the cash collection of pre-sold property and refinancing.
Emaar shares closed down 2% to AED3.88 in a broadly negative market Tuesday.
-By Stefania Bianchi, Dow Jones Newswires; +9714 446-1685; Stefania Bianchi@dowjones.com
Copyright (c) 2010 Dow Jones & Co.
(END) Dow Jones Newswires
27-04-10 1138GMT
