Dubai Investment Group has completed the acquisition of the Essex House Hotel in New York and appointed Dubai-based luxury hospitality group Jumeirah to operate the property.

The hotel is currently operated by Starwood Hotels & Resorts, which will hand over the reigns in January 2006.

Dubai Investment Group has announced plans for a US$50m (£27.5m, e40.7m) renovation programme of the 500-room hotel to redesign the lobby, bedrooms and public areas as well as creating new food and beverage outlets.

“We recognise the responsibility we have to enhance Essex House and to consolidate its position as one of New York’s few remaining truly original hotel experiences,” said Gerald Lawless, CEO of Jumeirah.

“We plan to create a true contemporary classic in New York, reflecting the tradition of the hotel’s historic past and the ambition of its luxurious future.”

The hotel will remain open throughout the work, which will be completed by the end of 2006.

Jumeirah plans to increase its portfolio to 40 hotels in the next five years.