DUBAI, June 4 (Reuters) - Dubai party hotel operator

FIVE Holdings is considering listing in London or New York,

three people with knowledge of the matter said.

The company, which owns the Pacha hotel and nightclub, has

been exploring an initial public offering in Dubai, it has said.

Chairman and founder Kabir Mulchandani said last year the

company was worth up to $3 billion and was considering a dual

listing. He did not name possible locations.

London could be a strong candidate given a majority of

clients at FIVE's Ibiza clubs are British nationals and that

business generates significant revenues for the group, one of

the people said. An offering would be a boost for London, which

has struggled to attract IPOs.

FIVE did not respond to requests for comment.

Dubai is the biggest tourism and trade hub in the Middle

East, attracting a record 18.7 million international overnight

visitors last year.

Foreign investors accounted for 50% of the total trading

value on the Dubai Financial Market exchange last year,

exchange data showed.

The company and its advisers are planning to start the

listing process by the end of the year, two of the people said.

The three people spoke on condition of anonymity because they

were not authorised to speak publicly.

FIVE operates luxury hotels in Ibiza and Switzerland as well

as owning one of Dubai's biggest party hotels, where guests can

park their top-of-the-range sports cars inside a nightclub for

Dhs10,000 ($2,723). Guests can also rent its 16-passenger

private jet for $14,000 an hour.

This year's market volatility, triggered by U.S. President

Donald Trump's policies, has weighed on global IPO activity, but

the Gulf region has bucked the trend as both Saudi Arabia and

the UAE have forged ahead with listing plans.

They include Saudi budget airline flynas, which is seeking

to raise over $1 billion, and Dubai Holding's residential REIT,

whose shares rose almost 15% during its debut on Wednesday.