Shangri-La Hotels and Resorts has signed a letter of intent to manage a 290-bedroom hotel in The Palm Tower on the world’s largest man-made island, Palm Jumeirah in Dubai – owned by real estate developer Nakheel.

Construction of The Palm Tower is scheduled to begin this year and expected to open in 2016, with the Shangri-La hotel to be located on the first 18 floors of the 52-level building. The hotel will feature a health club and spa, an outdoor pool and family dining, while guests will also have access to a beach club via a bridge and walkway.

The Palm Tower itself is part of the new The Palm Monorail and Nakheel Mall, a dining and entertainment destination also slated to open in 2016.

“Palm Jumeirah is synonymous with luxury living and leisure,” said Nakheel Chairman Ali Rashid Lootah. “Our new partnership with Shangri-La further reinforces the island’s position as a global destination offering unrivalled, world-class facilities for Dubai’s residents and tourists. The Palm Tower will be our flagship hotel and the ultimate address on Palm Jumeirah.”

Shangri-La president and CEO Greg Dogan agreed, “The Palm Tower’s strategic position at the heart of The Palm and alongside the Nakheel Mall makes the hotel the ideal location for anyone visiting Palm Jumeirah.”

Shangri-La’s new project on Palm Jumeirah is part of the group’s expanding portfolio in the Middle East. It currently operates four hotels in Abu Dhabi and Dubai in addition to a resort in Muscat, Oman. Two hotels are also under development in Qatar.

Nakheel is currently developing hotels in Dubai at Palm Jumeirah, Deira Islands – another collection of man-made islands – the Ibn Battuta Mall complex and Dragon Mart – set to be a hypermarket of Chinese goods.