Abu Dhabi National Hotels (ADNH) is in talks to buy some hotel buildings from Dubai's Emaar Properties, two sources familiar with the matter have said, as Emaar increasingly focuses on its core businesses.
ADNH, one of the biggest hotel owners in the emirate of Abu Dhabi, has been in advanced discussions with Emaar over the last two months, the sources said, adding Emaar would continue to manage the hotels.
ADNH declined to comment. Emaar said, "We are in discussion with a number of parties who have shown interest”, without giving details.
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Emaar is seeking to sell non-core assets, including its hotel portfolio, schools and clinics, Emaar's chairman Mohammed Alabbar said in a interview with CNBC Arabia on July 17.
The company's core businesses focus on property development, retail and hospitality.
Standard Chartered has been hired to work on the transaction for Emaar, which is seeking to raise $700 million for the hotels portfolio, excluding two prime assets, the Financial Times has reported.
ADNH's is only seeking to buy the hotel buildings, the sources said, and not Emaar's schools or clinics.
ADNH's portfolio currently includes hotels managed by Hilton, Ritz-Carlton, Sheraton and Park Hyatt in Abu Dhabi. Emaar's hotel portfolio includes the Address Hotels and Resorts and Vida Hotels and Resorts brands.