Rotana, one of the leading hotel management companies in the Mena region, is racing ahead with its plan to build the first luxury hotel in Baghdad’s 'Green Zone', said a report.

Shams Rotana, the new five-star hotel, which boasts of 250 rooms and suites, a swimming pool, a health club and several restaurants, will open its doors in 2012.

Rotana's 'Green Zone' project is not its debut venture in Iraq as the 'The Rotana Arbil' hotel, located in the main city of the largely peaceful northern region, is scheduled to open soon, the Arab News reported.

The room rates start at $250 per night in the new Baghdad hotel owing to high operational costs as a result of security concerns in the volatile location, it added.

Rotana currently manages 68 properties across the Mena region including luxury hotels in Abu Dhabi, Dubai, Al Ain, Sharjah, Fujairah, Ras Al Khaimah, Beirut, Kuwait, Syria, Sudan, Hurghada and Sharm El Sheikh.