Leading Hotels Switching Hands - Bass Hotels and Resorts Inc. buys the Regent Hong Kong from New World Development Company Ltd - Brief Article

Business Asia, June, 2001

Bass Hotels and Resorts (BHR), one of the world's largest hotel companies, has agreed to buy the Regent Hong Kong from New World Development with plans to convert the property to an Inter-Continental Hotel from June 2001.

Purchased for 241 million pounds ($661 million) in cash, the acquisition of the hotel is one of many steps BHR has planned for developing and expanding its presence in Asia.

"This strategic investment in Hong Kong will showcase the Inter-Continental brand in the Asia-Pacific," managing director of BHR Asia-Pacific Richard Hartman said.

London-based BHR, which has about three billion pounds in cash to spend after selling its brewing unit in June, said it wanted to double the number of Inter-Continental hotels it owns in the Asia-Pacific region this year to 29. Construction has started on properties in India, Tahiti, New Zealand and China.

Bass expects the Hong Kong hotel to earn 22 million pounds before interest, tax, depreciation and amortisation in the year ending June, and add to earnings in the first full financial year. The transaction is expected to be complete by the end of August.

Bass also bought New World's 75 per cent stake in the leasing contract to manage the hotel. Four Seasons Hotels, which owns the other 25 per cent, will retain its interest.