This article is from the Australian Property Journal archive
LUXURY hotelier Mandarin Oriental has pulled the plug on the proposed sale of Hong Kong’s Excelsior Hotel after receiving lacklustre bids.
Earlier this month the company launched a competitive process after receiving interest.
Mandarin Oriental reportedly received bids of $US3.8 billion, which was at the lower end of the valuation of between HK$24 billion and HK$34.2 billion (US$4.38 billion) for the four-star 848-room hotel located in Hong Kong’s Causeway Bay.
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.
However tighter capital controls by the Chinese government had restricted the field of buyers.
It is not the first time Chinese bidders have spoiled the party after Anbang Insurance Group made a $US14 billion bid for Starwood, trumping Marriott’s $13.6 billion bid, only to withdraw at the 11th hour because of financing concerns.
In a statement to the London Stock Exchange, the company said “Having considered the proposals recently received for the sale of The Excelsior, Hong Kong, none had met fully its expectations or transaction requirements.
“As the proposals have not provided the basis for the sale of the property at the current time, the company is continuing to review all options, including those that may result in redevelopment of the property into a commercial building,” Mandarin Oriental said.
Australian Property Journal
