THE Parkroyal hotel on Coleman Street has been sold to Hong Kong-based Park Hotel Group for $141.2 million.
Mainboard-listed Hotel Plaza, a United Overseas Land subsidiary, is selling its wholly-owned unit Hotel Grand Plaza. The sale price amounts to $2.35 a share.
Hotel Grand Plaza owns the 330-room hotel, formerly known as Grand Plaza Parkroyal Hotel, as well as the adjacent shopping arcade of about 4,000 sq ft.
Park Hotel’s unit Park Hotel Strategic Investments agreed to the deal, which lifts its portfolio to three hotel properties.
The private group, which owns Crown Hotel in Orchard Road and recently bought a hotel site in Robertson Quay, has been on the lookout for a total of five properties here.
Mr Allen Law, a director at Park Hotel, said it will keep all the tenants and staff, and continue to run the hotel. ‘It is now a 41/2 star hotel. With its location as well as the quality of the structure, we will be able to upgrade it and run it as a five star hotel,'’ he said.
The deal will have a significant positive impact on the consolidated profit of the Hotel Plaza Group for the year ending Dec 31 because of the realisation of an estimated gain of about $86.6 million or about 21.65 cents a share. The group also owns other hotels here, in Malaysia and in Yangon. Hotel Plaza shares closed two cents higher at $1.35.
Source : Straits Times - 4 Oct 2006
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