The Arabian Canal is a 75 km man-made waterway and series of waterfront developments. It will run from the Dubai Waterfront at Jebel Ali, past the new Dubai World Central International Airport, and back towards the Palm Jumeirah.

The company will continue work on the first phase of the project, excavation of an 8 km stretch of waterway. The whole project is likely to be split into around 10 phases.

The hotel is expected to offer 200 guest rooms, 100 branded residences, a restaurant, bar, and spa.

Marc Gordon, Chief Investment Officer at MHG said, ‘At MHG, our growth strategy has been to expand our properties to 24-hour gateway cities, both in the U.S. and internationally. We are pleased to announce MHG’s entry into the Middle East, a major milestone in the execution of our strategy to expand our brand to the world’s most exciting destinations. MHG has extended its efforts and resources in developing business outside of the US, and this transaction is the first of what we hope will be multiple new hotels in other parts of the world. Our properties are renowned by guests throughout the world and we look forward to leveraging our reputation as we enter new international markets.’

The Delano Dubai is expected to open in 2012.