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Singapore-listed hotelier Mandarin Oriental International revealed that several parties have submitted bids to purchase The Excelsior hotel in Causeway Bay, Hong Kong, reported the South China Morning Post.
Built in 1973, the four-star hotel with 848 rooms is expected to be in the range of HK$24 billion to HK$34.2 billion. This translates to between HK$35,000 and HK$50,000 psf based on the property’s gross floor area of 684,000 sq ft.
According to market chatter, the would-be buyers include Hysan Development and Sun Hung Kai Properties, as well as a partnership between China Evergrande Group and Chinese Estates Holdings.
Following the revelation that Mandarin Oriental received a number of bids for the property, the firms stock price increased by 20.75 percent to close at S$2.56 on Friday (15 September).
Originally, the company announced in an SGX filing in June that it had decided to gauge the market’s interest for the property. However, it noted in its latest filing that there is still no certainty in The Excelsior hotel’s divestment.
“No assumption should be made at this time regarding whether the property will or will not be sold,” it stated.
Bermuda-incorporated Mandarin Oriental International has a standard listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore. It is also a member of British conglomerate Jardine Matheson Group.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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