Is the Fairmont reign ‘under discussion’ over the Kingdom of Sheba?

Six years in the making, the highly anticipated Kingdom of Sheba project on The Palm Jumeirah may soon face another hiccup with operators Fairmont Hotels and Resorts stating that its partnership is currently ‘under discussion’.

Even as the hotel juggernaut readies to welcome guests to its 381-room Fairmont The Palm property on the trunk from September, insiders close to the project say that the hotel group may soon part ways with developers IFA Hotel Investments over the Kingdom of Sheba hotel and vacation club project.

When quizzed by Emirates 24|7, Joe Sita, president of IFA Hotel Investments simply said: “Phase one of Kingdom of Sheba is progressing well with the Balqis Residences roughly 70 per cent complete. Phase two, which will include a hotel and vacation club and will be built at a later date, is currently under review.”

Meanwhile, Fairmont Raffles International’s President and COO Michael Glennie told the website at the Arabian Travel Market: “We have been discussing the issue at hand with IFA over the past few weeks and hope to have an outcome soon.”

When further quizzed that rumours are afloat that the two companies are parting ways, Glennie added: “This is all I can say, that we are discussing the terms; the rest you need to ask IFA.”

Launched in December 2006, the Kingdom of Sheba is located on the Palm Jumeirah Crescent, next to Atlantis The Palm, which, according to the company statement issued then, covers 141,500 square metres.

The Kingdom of Sheba plan further elaborated that the property would comprise five separate and unique elements, each strongly influenced by classic Arab architecture – Residences, Hotel, Private Residence Club, Vacation Club and a Souq (Retail Plaza).

The combined value of the resort is in excess of $1 billion and was to be completed by mid 2010.

The residential component, Balqis Residence, is said to boast 300 residences - villas, town houses, penthouses and apartments. Prices range from $1 million to over $7 million for private beach villas and luxury penthouses.

The Fairmont was to operate the Kingdom of Sheba hotel of 550 keys, along with a Fairmont Vacation Club, billed as the first purpose-built vacation club in Dubai and will offer 100 units, in two-, three-, four- and five-bedroom configurations. (With additional reporting by Parag Deulgaonkar)

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