Palazzo Versace in Dubai Returns to Auction with Significant Price Cut

The Dubai property known as the Palazzo Versace is being offered at auction once more, but this time, the Dh1.3 billion asking price has been drastically reduced. The seller had lowered the asking price to slightly more than Dh1 billion in the interim, but they could still not attract a buyer.

This time, bids are accepted until October 16 with a Dh700 million asking price. The hotel, which is among the more well-known in the area, is keeping running efficiently and waiting for more business to pick up during the busiest time of year for the Dubai hotel industry.

Even after the price was reduced to Dh700 million, market analysts are still uncertain about whether any bids will be placed for the property. According to sources, in between, the banks engaged in negotiations to come to an agreement on the debt settlements with the current owner.

“The auction is only on the property itself – the trade license itself is not included in the sale,” said a source. “The property itself is rented out (to the hotel operator) until March 2028.

“Any interested party will need to factor in these details before deciding whether to bid or not.”

The 130 suites, along with four restaurants, a gym, a swimming pool, and other amenities, are what the buyer will receive. (The homes that are a part of the development are not included in the sale.)