Featured in this Asia Pacific Hospitality Newsletter - Week Ending 17 December 2004
Kowloon Hotel Hong Kong sold
Medtech to acquire Grandview Hotel in Macau
Hilton Hotel in Auckland sold
Mandarin Oriental Hong Kong to embark major renovation
Four Seasons Hotel Bangkok to undergo renovation
Accor to manage Sofitel in Beijing
Fraser Corporate Residences, Futian to open 2005
Anhui Province to develop a world-class theme park
Hotel Investment Conference – South Asia

Kowloon Hotel Hong Kong sold Return to Headlines
The Hong Kong and Shanghai Hotels, Limited (HSH) announced through its wholly owned subsidiary, HSH Holdings Limited, the company has entered into an agreement to sell The Kowloon Hotel to Swingfield Developments Limited for a consideration of HK$1.93 billion. Swingfield Developments is an investment holding company owned by Cheung Kong (Holdings) Limited (CKH) and Hutchison International Limited. The payment is scheduled to be completed in February 2005. HSH’s directors understand that the purchaser intends to continue running The Kowloon Hotel as a hotel subsequent to acquisition. The 736-key Kowloon Hotel was opened in 1986; its facilities include three restaurants, a bar, a business centre, meeting rooms and retail.

Medtech to acquire Grandview Hotel in Macau Return to Headlines
According to Reuters, Medtech Group Co. Ltd. plans to buy the four-star Grandview Hotel in Macau from Grand View Hotel Investment S.A. for HK$500 million ($64.31 million). The company plans to pay HK$400 million of the purchase in cash to 407-room Grand View Hotel Investment, controlled by casino mogul Stanley Ho, and settle the remainder by issuing 500 million new shares at HK$0.20 each. Furthermore, Medtech has proposed changing the company name to Golden Resorts Group Ltd.

Hilton Hotel in Auckland sold Return to Headlines
According to the Sunday Star Times Newspaper, the 166-room waterfront Hilton Hotel in Auckland, New Zealand was sold for A $51.5 million, to a consortium which includes its developer Dave Henderson. Henderson will own one third of the ownership whilst the other two thirds will be held by Wellington-based St Laurence Group and a small group of Australian and New Zealand investors, who had set up a new entity with Henderson for the purchase. The hotel was originally put on the market in February 2003 but was withdrawn after the SARS outbreak.

Mandarin Oriental Hong Kong to embark major renovation Return to Headlines
Mandarin Oriental International Limited announced a comprehensive US$110 million renovation of Mandarin Oriental, Hong Kong, which will upgrade significantly the facilities and services of the Group's flagship hotel. The renovations will include the upgrading of the hotel's rooms, public areas, restaurants and bars and an additional new spa. The number of hotel rooms will be reduced from 541 to 515, whilst the number of suites will increase from 55 to 75. The renovation programme will commence in late December 2005 and is expected to be completed in 2007. The programme will incorporate two periods of closure from late December 2005 to mid-April 2006, and again from mid-December 2006 to mid-March 2007.

Four Seasons Hotel Bangkok to undergo renovation Return to Headlines
According to Bangkok Post, the Four Seasons Hotel Bangkok will undergo an extensive THB245 million renovation of all its 338 rooms and suites. The renovation, to be undertaken in 2005 and 2006, is part of the strategic plan of Rajadamri Hotel Plc (RHC), the owner, and Four Seasons Hotels and Resorts, which started to manage the property in November last year, to make the hotel more competitive in the market. Up to 158 standard rooms will be renovated next year and the remaining 180 are slated for a makeover in 2006.

Accor to manage Sofitel in Beijing Return to Headlines
Accor signed a management agreement with Dalian Wanda Group to operate Sofitel Wanda Beijing, China. The 453-room Sofitel Wanda Beijing, located in Jianguo Street, is scheduled to open in 2006. The hotel is part of the new Wanda Plaza urban development project undertaken in Beijing, involving the re-development of 480,000sqm of prime land in Beijing's central business district. The project involves the construction of office towers, a major retail centre, restaurants, entertainment complexes, residential apartments and the 5-star Sofitel Wanda Beijing hotel. In addition to the 453 guestrooms, the Sofitel Wanda Beijing will also offer 50 serviced apartments, five restaurants, a bar and a 1,400sqm ballroom.

Fraser Corporate Residences, Futian to open 2005 Return to Headlines
Fraser Serviced Residences is set to launch a serviced residence in Shenzhen in January 2005. The 35-storey Fraser Corporate Residences, Futian, situated along the main Shennan Avenue, will comprise 165 apartments including one, two and three-bedroom units, BBQ facilities, a gymnasium, rooftop spa and outdoor and indoor swimming pools. This is the second Fraser property in Shenzhen followed by the opening of Fraser Place Serviced Residence, Shekou in end-December 2004.

Anhui Province to develop a world-class theme park Return to Headlines
According to the Hong Kong Sun, Shenzhen Huaqiang Corp. plans to invest RMB7 billion in building a Disney-style theme park in Wuhu City, Anhui Province over the next six years. The theme park will be located at the Wuhu Bridge Comprehensive Economic Development District, near the Anhui Wuhu Yangtze River Bridge. The 3.3 million-square metre theme park will include commercial, real estate and amusement projects, such as a high-tech amusement park, Fairytale Kingdom and Happy Water World. Construction is expected to begin early next year, and be completed in five years.

Hotel Investment Conference – South Asia Return to Headlines

The first ever Hotel Investment Conference – South Asia (HICSA) is to be held in Mumbai on 6th and 7th of April 2005 at The Hilton Towers hotel.

In the last 15 months, the Indian Economy has shown a lot of buoyancy with clear indications of the Hotel industry performing extremely well and witnessing a huge surge in investments.

  • Salient features among others, will include:
  • An overview of the Indian Hotel Market
  • World Hotel Leaders outlook
  • Discussion on the Financing Opportunities
  • The emergence of Budget hotels
  • Identifying Quality Manpower
  • Understanding the Asian hotel market
  • Marketing new avenues
  • Measuring up to the international challenge
  • The conference would identify the key trends & opportunities and strengthen people’s understanding of key issues.

    For more information, please contact: Lokesh Sabharwal at (+91 11) 24101005 or via email: lsabharwal@hvs.com

Absolute Share Price Performance, as at 17 December 2004