News for the Hospitality Executive
The Hongkong and Shanghai Hotels Signs Agreement with
Qatari Diar Real Estate
Investment Company to Re-develop the Former Home of the Majestic Hotel
in Paris, France into a Peninsula Hotel
HONG KONG, July 15, 2008 - The Hongkong and Shanghai Hotels, Limited (HSH) today announced that it has entered into a heads of agreement (HOA) with Qatari Diar Real Estate Investment Company (QD) for a proposed hotel development in Paris, France.
The building is located on Avenue Kleber, one of the most prestigious arteries off the Arc de Triomphe, in the heart of Paris' tourist and business districts. Built in the early 20th Century, the building was, until 1936, home to the Majestic Hotel which at the time was one of the top grand hotels in Paris. Subsequently, it was owned by the French State, occupied by UNESCO and the French Ministry of Foreign Affairs which has recently been using it as the Centre International de Conferences. The building is currently owned by Qatari Diar.
Under the HOA, the Company has agreed to purchase a 20% minority interest in the asset from QD and to subsequently jointly re-develop the building into a Peninsula hotel. The financial commitment of the Company in respect of the purchase of the minority interest in the asset, together with its share of the re-development costs, is expected to be in the region of approximately Euros 140 million. The expected date of opening is mid 2012.
HSH's shareholders and potential investors should note that the HOA is a non-legally binding agreement and the proposed hotel development will be subject to binding agreements being entered into.
About The Partners
Manager, Corporate Affairs
The Hongkong and Shanghai Hotels, Limited
|Also See:||Development of US$3 billion Entertainment City Will Help Shift Qatar's Visitors from Business Sector to Tourism Sector / December 2006|
|The Peninsula Tokyo Enters Tokyo's International High-end Hotel Market: Competition Stiff for Talented Staff, Faithful Patrons / August 2007|
|Owned by The Hongkong and Shanghai Hotels, Limited and Mitsubishi Estate Company Limited, the Peninsula Hotelsí Eighth Hotel Under Construction, the 315 room Peninsula Tokyo / October 2004|