DUBAI, May 28 (Reuters) - Dubai-based party hotel

operator FIVE Holdings Ltd is working with banks on a planned

initial public offering next year, people with knowledge of the

matter said, joining a growing number of companies in the

emirate that are listing on the stock exchange.

FIVE, which operates luxury hotels in Dubai, Ibiza and

Switzerland, is working with Citi and Deutsche Bank on the deal,

said the people, who declined to be identified as the matter was

not public.

FIVE Holdings, Citi and Deutsche Bank declined to comment.

FIVE owns one of Dubai's biggest party hotels, where guests

can park their supercars inside a nightclub for 10,000 dirhams

($2,723). It also offers an even more exclusive party in the sky

for the super-rich on its own 16-passenger private jet for

$14,000 an hour.

Chairman Kabir Mulchandani said in April that the company,

which estimates its own worth at $2.5 billion to $3 billion,

planned to list in Dubai and was in talks with advisers about a

potential dual listing, without elaborating on specific

locations.

The Gulf's IPO market has been buoyant this year and

included supermarket chain franchisee Spinneys,

which priced its IPO at the top of its indicative price range

last month. UAE-based hypermarket and mall operator Lulu is also

expected to go public later this year, Reuters previously

reported.

Any deal would test investor appetite for the small but

growing entertainment sector in Dubai that is geared towards

expats and tourists, against the backdrop of the socially

conservative Gulf region which is opening up to new industries

to diversify away from oil.

Dubai, the biggest tourism and trade hub in the Middle East,

was quick to reopen after the pandemic. That, along with an

influx of Russians and business professionals as well as relaxed

social and visa rules, helped fuel an economic boom that has

also seen property prices and rents balloon.

FIVE could also attract money flowing into companies with

environmental, social and governance (ESG) principles.

Last year, the company scored a top ESG rating for a green

bond that helped purchase Spanish group Pacha, in a deal worth

303 million euros ($321.9 million).

($1 = 3.6726 UAE dirham)