Damac Properties has awarded the China State Construction Engineering Corporation a Dh554 million contract to build part of its second Paramount Hotel project in Dubai.
China State, the world’s third-largest construction company, said it had been awarded the main work contract to build 27 floors of serviced flats of the Paramount Residences, at the Paramount Tower Hotel and Residences, on Sheikh Zayed Road in Business Bay.
The Lacasa-designed tower, which is scheduled for completion at the beginning of 2020, will eventually have 64 floors and will also include an 867-room hotel with a sky lobby, private cinema and rooftop pool.
The development is Damac’s second Paramount-branded hotel, which it is building in Dubai.
Turkey’s TAV construction is currently working on Damac’s US$1 billion four-tower Damac Towers by Paramount resort, also located in Business Bay. The project, comprising a 540-room Paramount-branded hotel and 1,400 serviced apartments, was originally scheduled to be completed this year, but the developer said that it now expects construction work to be completed at the start of next year.
Damac has also announced plans to build Paramount hotels in Abu Dhabi, Riyadh and two more in Dubai at Akoya and Jumeirah Waterfront.
Under the terms of a 2013 deal between Damac and Paramount, Paramount does not invest into the projects but lends its brand to them.
Damac, which is known for offering buyers luxury cars and boats as inducements to purchase Dubai property, has set itself the target of becoming the world’s largest serviced apartment operator.
In August, it reported that second-quarter profits were more than a third lower than during the same period a year ago and that revenue was down 25 per cent. However, the company’s founder, Hussain Sajwani, said its total profit this year was likely to be in line with the Dh4.5 billion it achieved last year.
Separately, Damac yesterday launched Akoya Relax with an offer to buyers of its villas of free service, maintenance and property management for five years. The villas start at Dh1.6 million, Damac said.
Follow The National’s Business section on Twitter