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Emaar plans hotels IPO

Burj Khalifa

Burj Khalifa, the world’s tallest tower owned by Emaar

Emaar Properties PJSC, Dubai’s largest publicly-traded real estate developer, plans to sell shares in its hotels unit in the second half and hired Rothschild as an adviser, three people with knowledge of the matter said.

The offering is planned for later in the year because of conditions on the Dubai Financial Market, two of the people said, asking not to be identified as the information is private. Chairman Mohammed Alabbar told Sky News in October that the company was considering the sale in the first half.

The United Arab Emirates’ market regulator advised “many” companies to delay initial public offerings this year because of market volatility, chief executive officer Abdullah Al Turaifi told reporters in Abu Dhabi earlier this month. Shares in the last company to list on the DFM, Dubai Parks & Resorts PJSC, dropped 9 percent on the first trading day.

 Emaar’s hotels business includes two Armani hotels in Milan and Dubai. In total the hospitality unit has 12 properties with more than 1,900 rooms in the United Arab Emirates, Egypt, India and Italy, according to a Nov. 18 company presentation.-Bloomberg