HONG KONG Toronto-based Four Seasons has finalized an agreement to manage the Four Seasons Hotel Hong Kong, which will be part of a mixed-use commercial development on Hong Kongs Central waterfront.
The property, part of the International Finance Center complex now under construction, will consist of a 38-story Four Seasons Hotel and a 48-story Four Seasons Suites hotel.
The new hotel complex is scheduled to open in 2004, but Four Seasons said it would not be a direct investor in the project. Local developers Sun Hung Kai Properties , Henderson Land and Hong Kong & China Gas are involved in developing the site.
Four Seasons also said that until 2010 it will continue to own 25% of the operating lease on the Regent Hong Kong, which was sold for 241 million pounds (HK$2.7 million) to Bass Plc on May 21 by New World Development Ltd.
Bass bought the property on the Tsim Sha Tsui waterfront as well as New Worlds 75% stake in the operating lease. Bass itself will take over the hotels management contract on June 1 and will operate it as the Hotel Inter-Continental Hong Kong.
Four Seasons said the operating lease runs until 2010 and the rent for the renewal period will be subject to a rent arbitration process. During 2000, it said it received about US$4.77 million in dividends from its stake in the operating lease.
Concerns have also been raised among Hong Kong property analysts that foresee New World buying out Four Seasons from the subleasing agreement. (5/24/01)
SOURCE: Reuters