Dubai-based Al Habtoor Group is to resume work on a AED1bn ($272m) hotel project on Palm Jumeirah, Dubai, UAE.

Work on the project originally began in 2007, but was put on hold in 2008 in the wake of Dubai’s debt crisis, which saw a 60% decline in the emirate’s property prices.

The 330-room Habtoor Island Resort and Spa, to open in 2013, will feature a spa, a private beach, six restaurants and a nightclub.

Al Habtoor will appoint a luxury international hotel brand to manage the hotel.