Kuwait's IFA Hotels and Resorts said it will build a $300 million hotel in New York's central Manhattan area in partnership with US real estate developer Related Companies.
The deal marks the Gulf company's first investment in North America and follows acquisitions by other Middle Eastern companies in the US hospitality market.
Talal Jasem Al Bahar, IFA Hotels & Resorts chairman, said the New York deal further diversifies the company's portfolio.
"We are excited about this development and working with Related, given their vast experience and impressive track record in real estate development in the US," he said, adding that this year the company entered six more countries.
IFA said it is discussing the specific components of the project, but a hotel will be at the core of its business strategy.
Related is a fully integrated real estate firm with divisions specialising in development, acquisitions, finance, property management and sales.
Related has developed or acquired over $15 billion in real estate assets and has another $9 billion of development currently in the pipeline.
"We look forward to partnering with IFA Hotels and Resorts to bring a new world-class hotel to New York City," Related Companies president Jeff T. Blau said.
Related, the owner of Manhattan's Time Warner Centre, recently received $1.4 billion from investors including Goldman Sachs, Abu Dhabi's Mubadala Development Company and Saudi Arabia's Olayan.
Each investor will co-invest in future development opportunities undertaken by Related. ( Gulf )