The Ritz-Carlton Hotel Company (RCHC) has signed an agreement with Oman's Ministry of Tourism to take over the operation of Al Bustan Palace in Muscat with immediate effect.

All existing employees are to be retained by RCHC to ensure a "smooth transition" for the management of the hotel, which includes an ongoing spa project to be completed in 2012.

Facilities at Al Bustan Palace include a fitness centre with cv and weight equipment; a sauna; a steamroom; relaxation areas; four restaurants; and a 1km (0.6-mile) private beach.

His Excellency Sheikh Abdul Malik bin Abdullah Al Khalili, Oman's minister of tourism, said: "The new management aims to introduce the concept of luxury and hospitality philosophy in our present time while maintaining the prestigious stature of the hotel."

RCHC president and chief operating officer Herve Humler said: "The Omani capital has long been a key aspiration for The Ritz-Carlton and we have waited a long time to find the perfect opportunity to add to our collection."