This article is from the Australian Property Journal archive
MANDARIN Oriental has reportedly received bids of $US3.8 billion for the Excelsior Hotel in Hong Kong’s Causeway Bay.
If it does proceed, it will be the most expensive hotel sold, smashing the current record set 2014 by Chinese insurer Anbang’s $US1.95 billion purchase of the Waldorf Astoria hotel in New York.
The four-star 848-room Excelsior Hotel sale would represent a room rate of $US4.48 million per room versus $US1.3 million recorded by Waldorf Astoria.
It is believed the bidders are Hong Kong developers Sun Hung Kai Properties and Hysan, who are competing against a joint bid by Chinese Estate Holdings and China Evergrande Group.
In a statement to the London Stock Exchange, Mandarin Oriental declined to comment on the bidders but said it has decided to test market interest in the possible sale of the property.
“The company today announced that it has received proposals from potential purchasers to acquire the property. These will form the basis for further consideration of the company’s strategic options,” the company said.
The Excelsior site has historical significance, it was the first plot of land sold in Hong Kong in 1841.
This will the second major transaction in HK this year following Henderson Land’s $US3 billion purchase of a 31,000 sq ft plot of land in May this year. The prized site is currently used as public car park facility.
Australian Property Journal
