Dubai-based property developer Damac has awarded the China State Construction Engineering Corporation a $150-million contract to build part of its second Paramount Hotel project in the Emirate.
CSCEC, the world’s third-largest construction company, will build 27 floors of serviced apartments at the Paramount Tower Hotel & Residences, an 867-guestroom hotel and hotel-residences tower on Sheikh Zayed Road scheduled to open in the first quarter of 2020.
The development is Damac’s second Paramount-branded hotel. Turkey’s TAV construction is currently working on Damac’s $1-billion four-tower Damac Towers by Paramount resort, also located in Business Bay. The project, with a 540-guestroom Paramount-branded hotel and 1,400 serviced apartments, was originally scheduled to be completed this year, but the opening has been pushed back to early next year.
Under the terms of a 2013 deal between Damac and Paramount, Paramount does not invest into the projects, but lends its brand to them.
In August, Damac reported that its second-quarter profits were more than a third lower than during the same period a year ago, and that revenue was down 25 percent. However, the company’s founder, Hussain Sajwani, said its total profit this year was likely to be in line with last year’s numbers.
Upcoming Paramount hotels—to be developed by Damac—are slated for Abu Dhabi, Riyadh and two more in Dubai at Akoya and Jumeirah Waterfront.