Corinthia Group has announced its withdrawal from its position as hotel operator at a planned beachfront hotel and residential project in the Jumeirah Beach Residence (JBR) area of Dubai.

Making the announcement as part of the Capital Market Rules it is subject to as a publicly listed company, it said it had agreed with Dubai-based investor Meydan on a settlement to exit its position in the project.

The investor has also withdrawn from the project.

The highly-anticipated project – which was to be known as the Corinthia Meydan Beach Dubai – was most recently earmarked to make its debut in 2021.

It would have marked the luxury hotel group’s entry in the Middle East, taking up a prominent position on the JBR beach.

The property was designed to reflect the excitement of the city and the serenity of the beach.

Guests would have been treated to a 55-story structure with views of some of the United Arab Emirates most famous sights, including the Palm Jumeirah and Dubai Eye.

Speaking when the project was first announced in April 2019, Matthew Dixon, the group’s Area Managing Director for the Middle East said: “We are confident that this property will enhance the Corinthia brand in the region, brilliantly enhancing our existing portfolio.”

Announcing its departure, the company wished the new owners of the project – which according to Time Out magazine is local luxury hotel and resort company FIVE – the best of luck, and said it would shortly be announcing new hotel and mixed-use development projects in the Gulf region.

It is not immediately clear why Corinthia pulled out of the project, but with the COVID pandemic hitting international tourism particularly hard, the company has recorded significant losses in recent financial reports.

Most recently, the company revealed it made a loss after tax of €26.4 million in the first half of 2021.

Even without the Dubai project, Corinthia is currently involved in a number of new projects, including those in New York, Rome, Brussels, Moscow, Doha, Bucharest and Malta.