Totally Covered

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The Address Hotel in downtown Dubai was engulfed in flames caused by a fire on New Years Eve, caused by an electrical short circuit. REUTERS/Ahmed Jadallah

Emaar chief: Insurance to cover loss of revenue due to the Address Downtown fire

BY LEILA HATOUM

Dubai’s real estate developer, Emaar Properties PJSC “will not” suffer from financial losses, after a fire engulfed its iconic downtown Address Hotel on New Year’s Eve, and the company is adamant at “restoring the hotel to its former glory,”  before the year’s end, Emaar’s top official told Newsweek Middle East.

Despite the fact that there is “no cost estimate yet,” assessing the size of the damage, the hotel “[is] totally insured, including [for the] loss of revenue,” Emaar’s Chairman, Mohammed Al Abbar, said in a telephone interview.

Orient Insurance PJSE company, which insured the hotel, declined to comment on the size of the insurance contract, citing “client-company confidentiality,” but real estate specialists estimate the amount at tens of millions of dollars.

However, Abbar said that “the evaluation process is [still] underway,” making it a bit difficult to give estimates of the total cost of the restoration and the loss of revenue.

The 63-floor, 302-meter hotel is Dubai’s 18th tallest skyscraper, and among the 100 tallest towers worldwide. It provided both residential and hotel services before it burned completely.

The hotel, as Abbar had said before, will be relaunched by year’s end.

“All design and technical engineers, are at work around the clock to evaluate the way forward. We are giving priority to our guests and residents. We would like to bring the Address Downtown to what it stood for and beyond,” he added.

Meanwhile, guests and residents of the hotel have been provided a stay at subsidiary facilities.

“All of our customers are looked after, in other Emaar hotels and other Dubai hotels too,” assured Abbar.
Following the fire, Dubai residents took to social media offering shelter to the hotel’s residents and guests.

“The government and communities in the emirate are so loving and support our city. We are so blessed,” Abbar said.

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