The five-star Angsana Dubai hotel on Sheikh Zayed Road is to be converted into homes, an apparent victim of the price war taking place in the city’s hotel sector.

The hotel’s owner, Damas, is selling the property for residential use because of the 'challenging economic environment brought on by the global economic recession', the Angsana’s management company said on Wednesday.

Singapore’s Banyan Tree Hotels, which has operated the hotel since it opened last year, said: 'Damas Hotels and Banyan Tree Hotels and Resorts have agreed to amicably terminate the hotel management contract covering the Angsana Dubai with appropriate compensation.'

The National