The BD10 million ($26.5 million) Al Dana resort project should be ready to receive tourists by June next year.
The Al Jazira Tourism Company's project, being constructed alongside the old Muharraq causeway, will be managed by French firm Accor Leisure Tourism, under its brand name Novotel.
The five-star resort is set to be a major tourist attraction, said Al Jazira Tourism Company vice-chairman and managing director Dr Kadhem Rajab.
"The project will consist of 180 chalets, and 25 of them will be floating chalets," he said.
"Also, there will be a floating restaurant, two other restaurants, a beautiful beach, marina, coffee shops and children's entertainment area.
"This is the first project of its kind, promoted jointly by a group of investors from Bahrain and Saudi Arabia."
The chalets are of one, two and three-bedrooms, and some of them will be inter-connected to each other for the convenience of large families.
Main contractors Ahmed Mansoor Al A'ali have mobilised all forces to complete the project by June next year, said Dr Rajab, who is also the Assistant Under-Secretary for Tourism.
"We are happy to have signed a management contract with Accor, which runs tourism projects including resorts, hotel chains and tour operating firms around the world," he added.
The project owners have signed an agreement with Arab Bank, for a term loan of BD4.25m for the project.
TTN is the most established trade publication in the Middle East distributed on a controlled circulation basis to members of the travel and tourism industry.
Published monthly by Al Hilal Publishing and Marketing Group, the region’s foremost trade publisher, TTN is aimed at professionals in the industry, from travel agents to airline and hotel personnel.
TTN provides in-depth and extensive coverage of relevant issues in the Middle East and North Africa as well as in other parts of the world. Travel related news, analysis, and new appointments together with information on up-coming exhibitions, marketing and promotional campaigns are presented in an innovative and striking colour tabloid.
Every issue also contains a collation of international and regional news and topical features of interest to readers.