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736 room Kowloon Hotel for HK$1.93 billion (approx $248 million USD) |
Hong Kong, December 6, 2004 � The Hongkong and
Shanghai Hotels, Limited (HSH) today announced that 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, both of which are the purchaser�s guarantors.
The net asset value of the hotel�s owner, The Kowloon Hotel Limited (KHL), a wholly owned subsidiary of HSH Holdings, was HK$510.5 million, as set out in the company�s audited accounts for the year ended December 31, 2003. The consideration is adjustable depending on the net asset value of KHL shown in the Completion Accounts, which will be prepared within one month of completion. It is expected that the company would realise an estimated special gain of approximately HK$800 million, being the difference between the consideration (less expenses) and the carrying value or cost of net assets of KHL. The 736-key Kowloon Hotel was opened in 1986; its facilities include three restaurants, a bar, a business centre, meeting rooms and retail. Incorporated in 1866 and listed on the Hong Kong stock exchange, The Hongkong and Shanghai Hotels, Limited�s principal business comprises the ownership and management of prestigious hotel, commercial and residential properties in key destination in Asia and the USA; it is the owner and operator of The Peninsula Hotels. The hotel portfolio comprises The Peninsula Hong Kong, The Peninsula New York, The Peninsula Chicago, The Peninsula Beverly Hills, The Peninsula Bangkok, The Peninsula Palace Beijing, The Peninsula Manila and The Peninsula Tokyo (opening 2007) under the brand name. The Kowloon Hotel in Hong Kong will be managed by The Peninsula Hotels until February 1, 2005; Quail Lodge Resort and Golf Club, Carmel, California is managed by Valley Resort Management, LLC. |
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Contact:
The Hongkong and Shanghai Hotels, Limited http://www.peninsula.com |