RIYADH: Al Habtoor Group will permanently close all operations in Lebanon, it has announced, citing prolonged instability, hostile campaigns, and failed negotiations with the Lebanese government.
The decision marks the end of the Group’s 25-year presence in the country, which began with the opening of its first hotel in 2001. The closure will result in the termination of contracts for all employees in the country.
In an official statement, the Dubai-based group said that the decision comes against the backdrop of “prolonged instability, ongoing hostile campaigns, public attacks, and defamatory actions directed at the Group and its businesses, as well as the broader legal proceedings currently underway between the Group and the Lebanese Government.”
The statement added: “The cumulative impact of these factors has rendered the continuation of operations unsustainable at this time.”
The Group acknowledged the “human and professional implications” of its decision, and it came following a “long history of resilience and commitment.”
The statement added: “Throughout years marked by successive wars and crises, the Group absorbed substantial operational and financial burdens, honoured its obligations to its employees, and treated this period as a humanitarian responsibility before a commercial one, despite the absence of effective state decision-making and the failure to provide the minimum levels of stability and protection required.”
It said this approach was “no longer viable”, adding: “As conditions continue to deteriorate, institutional failure persists, and no meaningful or structural solutions emerge to address the underlying deficiencies, Al Habtoor Group finds itself compelled to make the decision to cease its operations in Lebanon and halt the ongoing financial drain, and proceed with the termination of all employees.”
Al Habtoor Group’s portfolio in Lebanon consists of two hotels in the capital, the Metropolitan Palace Hotel Beirut and the Al Habtoor Grand Hotel Beirut.
These are operated as a single complex known as “Al Habtoor City Beirut” due to their adjacent locations and connecting bridge. According to a publicly available document from 2011, the Al Habtoor Grand Hotel Beirut employed 250 people at that point.
Earlier in January, the Group posted a recruitment announcement on its official LinkedIn page saying: “Al Habtoor City Beirut is looking for passionate and service-oriented professionals to join our growing team.”
In a post on his LinkedIn page earlier this month, the Cluster General Manager of Al Habtoor City in Beirut, Omar Saade, highlighted 2025’s achievements and stated: “Looking forward to building on this momentum as we prepare for an exciting 2026.”
Earlier this week, the group said it will move forward with legal action against the country after years of unresolved investment disputes and mounting losses of $1.7 billion linked to banking restrictions and state inaction.
In a statement, the group said its assets suffered “severe and sustained harm” due to measures imposed by Lebanese authorities and the Banque du Liban, which prevented access to and transfer of lawfully deposited funds. The resulting losses were compounded by Lebanon’s political, economic, and institutional collapse.
“These enormous losses are not limited to the unlawful deprivation of access to the Group’s funds in the Lebanese banks, but also arise from the broader collapse of institutional stability,” a statement issued on Monday said.
In 2024, the group formally notified the Lebanese government of an investment dispute through an international law firm, triggering a six-month cooling-off period as prescribed under the UAE-Lebanon Bilateral Investment Treaty, in force since 1999.
Despite what it called “sustained good-faith efforts,” no meaningful progress was made. “Investor protection is not discretionary, it is a fundamental obligation under international law,” the group emphasized.
The legal escalation follows public warnings from Group Chairman Khalaf Al-Habtoor in late 2023. In a December 2023 interview with Arab News, he stated the group was prepared to withdraw entirely and pursue international legal remedies if protections were not restored.
