LONDON According to a recent Reuters report, Bass Plc is paying $346 million for the Regent Hong Kong Hotel. Bass is taking over ownership of the 514-room hotel from Hong Kong property developer New World Development Co. Ltd. to create its second Inter-Continental property in Hong Kong.
The Regent is to be renamed Hotel Inter-Continental, Hong Kong and will be managed by Bass starting June 1.
Bass, which is also reportedly eyeing Wyndham International for acquisition, said the Hong Kong deal was expected to increase its earnings in the first full financial year. Lehman Brothers analyst Frazer Ramzan, according to Reuters, said the price for the Hong Kong property may initially look high, with the company paying 10.9 times EBITDA when the European hotels sector was trading at around eight times, but he points out the price was at the bottom end of local expectations, and the deal gives scope for Bass to improve occupancy levels. (5/21/01)