HONG KONG According to a Reuters report, Four Seasons Hotels may dispose of its stake in the operating lease of the just-sold Regent Hong Kong hotel.
In an ideal situation, we would prefer not to own a hotel which we do not manage, Four Seasons CFO Doug Ludwig said.
Four Seasons management of the luxury hotel on the Tsim Sha Tsui waterfront will end on May 31 as a result of last weeks sale of the property by New World Development Ltd to Bass Plc for $342.7 million, or U.K. #241 million.
As previously reported by HOTEL BUSINESS., Bass acquired the property as well as a 75% stake in the Regents operating lease. In addition it will take over the hotels management contract from June 1 and operate it as the Inter-Continental Hong Kong. Last week, Four Seasons said that despite the Regent sale it would continue to maintain the 25% interest in the operating lease, which expires in December 2010.
Ludwig said Four Seasons was not currently in negotiations with New World or Bass regarding its 25% interest in the lease. (5/29/01)
SOURCE: Reuters