AHS buys landmark Shangri-La Dubai for Dh1.1bn

AHS Properties has acquired the Shangri-La Dubai hotel on Sheikh Zayed Road for Dh1.1 billion, deepening the luxury developer’s hold on one of the city’s most tightly held real estate corridors and signalling renewed confidence in prime mixed-use assets.

The deal places a long-established hospitality landmark under the control of Abbas Sajwani’s company at a time when Dubai’s luxury property market continues to draw large-ticket capital into central locations, branded residences, hotels and commercial towers. The transaction also gives AHS Properties another strategic address on Sheikh Zayed Road, where it already has AHS Tower and the announced AHS City development.

Sajwani, founder and chief executive of AHS Properties, said the acquisition was driven by the hotel’s location and the company’s confidence in Dubai’s long-term expansion. “What attracted me to it is the location. You cannot replace this kind of location,” he said. “Given the demand in that location, the continued growth of Dubai and everything the city has to offer, we thought it was a great acquisition for our long-term vision.”

Shangri-La Dubai, which opened in 2003, is among the most recognisable hotel towers on Sheikh Zayed Road. The 42-storey mixed-use asset includes the luxury hotel, residential apartments and office space, with views towards Burj Khalifa and the Arabian Gulf. Its position near Downtown Dubai, DIFC and the city’s main business spine has made it one of the corridor’s prominent hospitality properties for more than two decades.

The hotel is expected to continue operating under the Shangri-La brand. Shangri-La Group has indicated that operations, guest services and existing commitments will continue without disruption. For guests, staff and partners, the immediate message is continuity rather than abrupt repositioning, though AHS Properties is expected to examine refurbishment and value-enhancement options across parts of the building.

The price highlights the sharp rise in values for scarce, central real estate in Dubai. The same property was sold in 2020 for about Dh700.2 million through an online auction linked to debt recovery proceedings involving Al Jaber Group. The latest transaction represents a gain of roughly 57 per cent over six years, underscoring investor appetite for income-generating trophy assets in prime districts.

AHS Properties has built its brand around ultra-luxury residential and commercial projects, with a portfolio spanning high-end villas, branded residences and prime city assets. The company’s move into a landmark hotel property suggests a broader strategy that blends hospitality, residential and commercial uses, rather than a narrow shift into hotel ownership.

Sajwani has said AHS remains focused on luxury real estate across residential, commercial and hospitality segments. The company is studying how best to enhance the Shangri-La Dubai asset, with options likely to include upgrades, repositioned amenities and stronger integration with the wider premium demand around Sheikh Zayed Road.

The acquisition also comes as Dubai’s real estate sector continues to operate at elevated levels. Real estate transactions exceeded Dh917 billion in 2025, rising 20 per cent year on year, while the first quarter of 2026 recorded Dh252 billion in total transactions, up 31 per cent by value. Luxury property investment has remained resilient, supported by wealthy buyers, family offices and institutional investors seeking assets in established districts.

Tourism fundamentals have also supported hospitality-linked investment. Dubai welcomed 19.59 million international overnight visitors in 2025, up 5 per cent from the previous year, while hotel occupancy reached 80.7 per cent. The city’s hotel inventory stood at 154,264 rooms across 827 establishments by the end of 2025, with average daily rates and revenue per available room both rising.

For Sheikh Zayed Road, the purchase reinforces a shift from older standalone commercial towers towards higher-value mixed-use repositioning. Limited availability of new plots along the corridor has increased the importance of redevelopment and asset acquisition, particularly near Downtown Dubai, DIFC and Business Bay.

AHS Properties is also preparing another major Sheikh Zayed Road project, described by Sajwani as a Dh25 billion mixed-use development expected to be launched later this year. That plan, together with AHS Tower and the Shangri-La acquisition, points to a concentrated corridor strategy built around scarcity, skyline visibility and premium end-user demand.