Dubai master developer Nakheel broke ground on a new, AED176 million hotel at Dragon City, further reinforcing its aggressive expansion into the hospitality sector.

The ground-breaking ceremony, led by Nakheel Chairman Ali Rashid Lootah, comes less than two weeks after the company awarded a contract worth AED136 million to Al Ghurair Contracting and Engineering Works LLC to build the 304-room hotel.

With a total project value of AED176 million, the Premier Inn is Nakheel’s second hotel at Dragon City. The first, a 251-room ibis Styles hotel, opened in February 2016.

It is one of two Nakheel hotels managed by UK hospitality giant Whitbread under the Premier Inn brand. The first, a 372-room hotel at Ibn Battuta Mall, opened last October.

Set for delivery in 2019, Premier Inn Dragon City is the latest project in Nakheel’s AED5 billion hospitality expansion. Last week, the company confirmed new hotels at Jumeirah Village Circle and Discovery Gardens, bringing its number of hospitality projects to 18.

Nakheel Chairman Ali Rashid Lootah said: “Today marks another milestone in our hospitality expansion, and highlights our commitment to delivering new hotels across Dubai in line with the Government of Dubai’s 2021 vision. I am delighted to declare that work is officially under way at Premier Inn Dragon City, and to further reinforce our already highly-successful relationship with Whitbread through this latest partnership.”

Premier Inn Dragon City is part of a huge new master plan that is transforming the area into a giant retail, residential and recreational complex of more than 11 million square feet.

With a built-up area of 178,000 sq ft across eight floors, the hotel will have a restaurant, Costa coffee shop and gym.

Nakheel’s hospitality expansion is bringing 18 new hotels and serviced apartment complexes, with over 5,800 rooms between them, to Dubai. Two are already operational, with the rest at various stages of construction and development:


 Location Type Rooms Partner/Operator Status
Dragon City Hotel 251 Accor – ibis Styles Operational
Dragon City Hotel 304 Whitbread – Premier Inn Under construction
Ibn Battuta Mall Hotel 372 Whitbread – Premier Inn Operational
Ibn Battuta Mall Hotel 375 Minor – AVANI Construction starting Q2 2017
Palm Jumeirah (The Palm Tower) Hotel 289 Starwood – St Regis Under construction
Palm Jumeirah (Palm 360)


Hotel x 2 110 (total) To be confirmed Design stage
Jumeirah Village Triangle Hotel 256 Hilton – DoubleTree (MoU) Under construction
Jumeirah Village Circle Hotel 250 To be confirmed Design stage
Discovery Gardens Hotel 250 To be confirmed Design stage
Deira Islands Resort 800 JV – Nakheel/RIU Agreement signed
Deira Islands Resort 550 JV – Nakheel/Centara Agreement signed
Deira Islands Hotel x 4 1,000 (total) To be confirmed Design stage
Deira Islands Serviced apts x 2 1,000 (total) To be confirmed Design stage
TOTAL 5,807

Source: Nakheel

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