By mutual agreement with the owners, Kempinski has confirmed it will end its management deal at the Emerald Palace Kempinski Dubai on the Palm Jumeirah.
The decision took effect on May 1st.
The property is owned by Armenian businessman Nver Mkhitaryan, founder of the Emirates Palace Group.
The hotel has been closed since April last year and is not scheduled to reopen until September.
Following this extended period of inactivity, the luxury European hotelier said both parties had agreed to end their cooperation at the property.
However, Kempinski will keep the contract to run the nearby Kempinski Hotel & Residences, Palm Jumeirah.
A statement from Kempinski said: “From its opening in November 2018, Emerald Palace Kempinski Dubai has delivered beautiful guest experiences within magnificent surroundings, creating lasting memories.
“Kempinski Hotels thanks the hotel owning company for the constructive partnership at this property over the past three years and provides its full support for a smooth transition phase.”
Kempinski also recently lost the contract to manage the Emirates Palace in Abu Dhabi.