Emaar recovers $300m hotel fire insurance for Address Downtown Dubai

Emaar recovers $300m hotel fire insurance for Address Downtown Dubai

Address downtown dubai, Address Hotel fire in Dubai, Dubai fire, Dubai hotels, New years eve fire

Emaar Properties will recover 1.22 billion dirhams (US $332.15 million) as insurance claim for a fire at its Atkins-designed Address Downtown Dubai property which suffered a major blaze ahead of New Year’s Eve celebrations in 2015, reports  Hotelier Middle East.

According to a bourse statement, the insurance claim will result in a write back of the 301 million dirhams provision created in 2015 to cover the incident. The write back will be recorded as income in the quarter ending December 31, 2016, reported Reuters.

READ MORE: Contractor Dutco chosen to resurrect fire-hit Address Dubai

 The fire which engulfed the 63-storey hotel on New Year’s Eve was caused by an electrical short-circuit.

Emaar said in January 2016 that the fire should have “no material impact” on the company because the building and risk of fire were covered by its insurance.

Address Downtown had signed the claim with local insurer Orient Insurance.

READ MORE: Updated UAE fire code launched at Intersec 2017

The hotel which is in close proxitmity to the Burj Khalifa, world’s tallest building, has been shut since it caught fire 13 months ago.

According to Arabian Business, a clean-up operation is underway on site, as is a mechanical, electrical, and structural assessment of the building prior to restoration operations.

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