Djibouti, February 8, 2009: Nakheel Hotels has completed the second phase extension of its stunning Djibouti Palace Kempinski. The expansion of the hotel has now increased its initial 177 guest room inventory to a total of 254 rooms and 55 furnished apartments.

The Djibouti Palace Kempinski opened in November 2006 and was the first five-star hotel to open in Djibouti and the first hotel operated by Kempinski in East Africa. The initial phase of the hotel was built in a record nine months on 49,000 m2 of reclaimed land in a Red Sea inlet. The hotel was a major development achievement as 97% percent of the construction materials and hotel furnishings had to be imported. This enormous logistics effort was made possible by the Port of Djibouti operated by DP World, another Dubai World company.  The opening of the second phase of the hotel coincides with the inauguration of the opening of Terminal 2 of the Port of Djibouti.

Joe Sita, CEO of Nakheel Hotels said:

"We are delighted with the successful expansion of the Djibouti Palace Kempinski, Djibouti's first five-star hotel.  Nakheel Hotels has always followed a strategy of investing in key gateway cities around the world, alongside up-and-coming destinations which offer huge growth potential. The expansion of both our hotel and DP World's Port of Djibouti reflects growth in business travel and investment in East Africa."

Strategically located at the Horn of Africa, the hotel boasts state-of-the-art banquet and conference facilities and has hosted high profile conferences and events, including the COMESA (Common Market for Eastern and Southern Africa) Summit attended by leading politicians and Heads of State from around the world. 

The second phase of the hotel integrates the traditional Swahili and Arabic architectural style of the initial phase and includes six levels of deluxe hotel rooms and suites, retail outlets, lounges and restaurants, a modern gym, as well as luxury hotel apartments. Construction of both phases of the hotel was carried out by renowned Japanese builder Taisei.

-Ends- 

About Nakheel:
Nakheel is one of the world's largest privately held real estate developers, and a key player in realising the vision of Dubai for the 21st century: creating a world class destination for living, business and tourism.

Nakheel is developing an iconic portfolio of innovative landmark projects in Dubai, and now in key markets around the globe, across a range of sectors - residential, commercial, hotels, retail, and leisure. Nakheel's projects are conservatively estimated to be worth US$80 billion. Upon completion Nakheel's waterfront projects will have added more than 1000km of shoreline to Dubai's coastline.

Nakheel's Dubai portfolio currently includes Palm Jumeirah, Palm Jebel Ali, Palm Deira, The World, Waterfront, The Universe, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Ibn Battuta Mall, Al Furjan, International City, and Dragon Mart.

Nakheel is a key entity within Dubai World. Dubai World is one of the world's largest holding companies and supervises a portfolio of businesses and projects for the Dubai government across five continents and more than 100 countries.

Further information can be found at www.nakheelmediacentre.com

About Nakheel Hotels
Nakheel Hotels is an integrated hotel development, investment and asset management business with investments under management currently in excess of $4billion.

Nakheel Hotel's goal is to deliver exceptional returns through the acquisition and active management of luxury hotels in key gateway cities and resorts around the world, together with strategic equity investments and investment in branded budget hotels in key growth markets. Building and leveraging relationships with key strategic partners is central to the company's investment strategy.

Investments include the Mandarin Oriental and W Union Square hotels in New York, Hotel Washington in Washington DC, the One & Only Resort in Los Cabos, Mexico and significant equity stakes in Kerzner, operator of the Atlantis and One&Only brands, and International Hotel Investments plc, owner of a portfolio of hotels in Europe and North Africa operated under the Corinthia brand. Nakheel Hotels also has significant investments in the budget hotel sector, holding the master franchise rights for easyHotels.com in the MENA region with the first hotels under development in Dubai, and an investment in Tune Hotels in the ASEAN region. 

About Kempinski
Kempinski Hotels is the oldest luxury hotel collection in Europe, acquiring its first property in 1897. While the Group was founded in Germany, its portfolio is now spread throughout Europe, Middle East, Africa, South America and Asia with properties in locations such as Beijing, Berlin, Budapest, Buenos Aires, Istanbul, London and St Moritz. Rich in tradition, it comprises a fine collection of hotels and resorts, from the truly historic to the breathtakingly avant-garde.

For more information please contact:
Nakheel
Lashley Pulsipher,
Senior PR & Communications Executive on +971 4 375 3797 / +971 (0)50 658 2052
lashley.pulsipher@nakheel.com

© Press Release 2009