Palazzo Versace Dubai Returns to Market with AED 600M Auction Price

The iconic Palazzo Versace Dubai hotel is once again on the auction block, this time with a significantly reduced base price of AED 600 million, down from its initial listing of AED 1.3 billion. This move is part of the owner's ongoing financial restructuring efforts.

Auction Details

The auction, open for 11 days, offers prospective buyers the opportunity to acquire the 215-room luxury hotel located in Dubai's Al Jaddaf area. Notably, the 169 serviced residences within the development are excluded from the sale. Industry analysts suggest that the reduced price indicates a motivated sale, aiming to attract investors amid the owner's financial restructuring.

Hotel Operations Unaffected

Despite the property's auction, the hotel's operations remain unaffected. Monther Darwish, Managing Director of Palazzo Versace Dubai and Chairman of Palazzo Hospitality, emphasized: "The hotel has an exclusive management contract with Palazzo Hospitality Services, with contractual and exclusive rights of operation secured until 2037. We retain the beneficial right of the entire building until the year 2028."

Darwish also addressed misconceptions linking the hotel's performance to the owner's financial issues: "We are aware of the misleading allegations implying that Palazzo Versace Hotel is implicated in the financial difficulties of Emirates PVD, the building's owner and developer. We firmly deny these facts."

Market Performance

Palazzo Versace Dubai continues to perform strongly in the hospitality market, with occupancy rates averaging 75-80% during peak seasons and 45-50% during off-peak periods. The hotel's offerings include four restaurants, two swimming pools, and a gym, all of which are part of the auction.

The auction of Palazzo Versace Dubai presents a unique investment opportunity in one of the city's most prestigious hospitality assets. With a significantly reduced price and stable operational performance, the property is poised to attract considerable interest from investors seeking to capitalize on Dubai's thriving tourism and real estate sectors.