Istithmar Hotels

Overview

A Dubai-based private investment firm specializing in global hospitality assets. Established in April 2006, Istithmar Hotels is the hospitality asset management arm of Istithmar, which is wholly owned by Dubai World, a government-owned company. The firm focuses on managing and investing in luxury hotel properties worldwide, including high-end, boutique, and budget hotels in strategic locations such as London, Paris, New York, China, India, Pakistan, the Middle East, and North Africa. Istithmar Hotels employs a buyout and growth investment strategy, targeting iconic properties in key gateway cities and emerging markets. The firm's portfolio includes notable assets like Atlantis, The Palm in Dubai, and the Mandarin Oriental New York. In 2006, Istithmar Hotels acquired a majority stake in the Mandarin Oriental New York, purchasing 73% of the property for $340 million. The firm also completed the purchase of the W Hotel Union Square in New York for $285 million in 2006. In 2007, Dubai World consolidated its hotel business under the Nakheel Hotels brand, merging Istithmar Hotels with Nakheel to create a fully integrated hotel investment company. This consolidation aimed to streamline operations and enhance the management of Dubai World's hospitality assets. The merged entity remains a wholly owned subsidiary of Dubai World, reflecting the government's commitment to the hospitality sector and its strategic importance in the global market.

Investment Focus

• Established luxury hotel properties
• Strategic locations in key gateway cities and emerging markets
• Opportunities for value enhancement through operational improvements or repositioning

Portfolio Companies