Nakheel Hotels in Mexican Resort Acquisition

April 3, 2008

Cleary Gottlieb represented Nakheel Hotels in its acquisition of a 50% interest in the One&Only Palmilla, a Mexican resort with an enterprise value of $315 million. Nakheel acquired its stake in the resort from real estate opportunity funds affiliated with Goldman Sachs’ Whitehall Street Real Estate Fund. Kerzner International Holdings Limited, a developer and operator of destination resorts, casinos and luxury hotels, including the Atlantis and One&Only brands, will retain a 50% interest in the property as Nakheel’s joint venture partner. The deal closed on April 3.

Nakheel Hotels is a fully integrated hotel investment and development company that invests money on behalf of the government of Dubai.

The One&Only Palmilla is a 250-acre luxury oceanfront resort located in a master-planned community in Los Cabos, Mexico. It includes a golf course designed by Jack Nicklaus. The One&Only Palmilla was listed as the number one resort in Mexico by Condé Nast Traveler’s 2007 Annual Readers’ Choice Awards.