Al Marjan Island Hotel Deal Delivers Fourfold Equity Return Before Construction
DAMAC acquired the proposed Marriott-branded resort development in 2024 after its original developer secured a beachfront site and established a hospitality partnership on Ras Al Khaimah's growing waterfront destination.
A hospitality investment on Ras Al Marjan Island has reportedly generated a fourfold return on invested equity following the sale of the proposed development to DAMAC in 2024, according to an announcement by Zenith Group.
The investment was initiated by Three Musketeers Hospitality, a subsidiary fully owned by Plus Holding Ltd. The company was co-founded by Dubai-based businessman Hari Shankar Tibrewal, who also serves as chairman of Zenith Group.
Rather than taking the project through the construction phase, the investment group chose to sell the development after securing the land and establishing an agreement with an international hotel operator.
Marriott partnership established for beachfront resort
The original development strategy involved securing a beachfront plot on Al Marjan Island and transforming it into an upscale hospitality destination.
In May 2023, Three Musketeers Hospitality entered into an agreement with Marriott International to develop the Le Méridien Al Marjan Island Resort & Spa.
The proposed property was planned to accommodate approximately 350 guest rooms and suites. Its facilities were expected to include seven dining venues and lounges, a spa, swimming pool and additional leisure amenities.
At the time of the agreement, the resort was expected to open in 2026.
The Marriott partnership was an important part of the investment strategy, giving the proposed development an established international hospitality brand before construction commenced.
DAMAC acquisition generated reported fourfold investment return
The project was subsequently transferred to DAMAC in 2024, allowing the original investors to exit the venture before moving into the construction stage.
Zenith Group stated that the transaction produced a return equivalent to four times the equity initially invested. However, the company did not reveal the original capital contribution or the final acquisition price.
Hari Shankar Tibrewal explained that the investment strategy focused on entering the location at an early stage, securing a recognised hospitality partner and completing the sale when an attractive opportunity emerged.
The approach allowed the investment group to realise its reported gains without committing further funds to the construction and operational requirements of the proposed resort.
Al Marjan Island attracts growing real estate investment
The transaction took place during a period of increasing investor attention towards Ras Al Khaimah, particularly its waterfront development opportunities.
Al Marjan Island has become an important focus for hospitality and residential investment as the emirate expands its tourism infrastructure and attracts international developers.
The announcement of Wynn's multibillion-dollar integrated resort played a significant role in strengthening investor interest in the destination. Land values on the island reportedly increased by approximately 65% during 2023.
The combination of tourism investment, beachfront locations and internationally recognised hospitality brands has helped establish Al Marjan Island as an increasingly prominent destination for property development.
Strategic property investment continues to shape Ras Al Khaimah
The reported transaction demonstrates how investors can create value in the property sector before a development reaches the construction stage.
Securing attractive land, obtaining a partnership with an established hotel operator and transferring a project to another developer can provide an alternative investment route to completing and operating a property.
For Ras Al Khaimah, deals of this nature also highlight the growing commercial interest surrounding its tourism-led development strategy.
Although the original investors have reportedly exited the Le Méridien project, details about its subsequent development plans and the final transaction value have not been disclosed.
The deal adds another example of investor activity on Al Marjan Island as Ras Al Khaimah continues to attract attention from developers, hospitality groups and international property investors.
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