U City Plc is set to expand Vienna House, the company's hotel management brand, into the Middle East after signing a letter of intent with Nakheel, a Dubai-based developer.
Vienna House is U City's hotel management brand operated by Vienna International Hotelmanagement AG.
The signing is aimed at paving the way for the Thai company to develop and manage a beachfront resort under the name Vienna House Deira Beach.
The terms and conditions for the cooperation require approvals from both sides, executives said at yesterday's signing event in Bangkok.
Keeree Kanjanapas, chairman of U City said Vienna House's hotel management brand, called Vienna International Hotelmanagement, will branch into the Mideast market through the joint venture with Nakheel.
The partners plan to develop a 600-room beach resort worth about 5 billion baht at Deira Islands, Nakheel's 15.3-square-kilometre waterfront destination.
The beach resort is due to open after 2020.
The venture will expand the portfolio of Vienna International Hotelmanagement under the Vienna House brand and will introduce the brand to the Thai market in the future as well, Mr Keeree said.
Dubai's economy continues to show continuous growth, especially in the property and tourism industry, as a result of extensive development plans.
The partnership is an opportunity to bring the brand, which is already well-established in European markets, to other parts of the world, Mr Keeree said.
Mr Keeree said final project development at Deira will be finalised in the next two months, including budget of investment, location, number of projects and further details.
Moreover, U City will introduce the Vienna House brand in Mideast and Thai markets.
Ali Rashid Ahmed Lootah, chairman of Nakheel PJSC, said his group will work with Vienna House in Deira Islands.
The Vienna House Deira Beach is an example of how this strategy is coming to fruition, he said.
According to Rupert Simoner, chief executive of Vienna International Hotelmanagement, Vienna House offers several different categories of hotel.
Vienna International Hotelmanagement is Austria's largest independent hotel group and owns and manages over 30 hotels.
Vienna House hotels operate in the upscale design segment and include individual city and resort hotels.
Vienna House Easy is the group's smart-casual hotel brand.
The Vienna House Revo brand has positioned itself as a more changeable range of hotels, aimed at adapting to how newer generations live and work.
