UOL Hong Kong Hotel Acquisition Talks Continue
Singapore-based property developer UOL Group is in discussions to acquire the Hyatt Regency Hong Kong in Kowloon’s Tsim Sha Tsui district for around HK$3 billion (US$382 million).
The UOL Hong Kong hotel acquisition would include buying the shares held by New World Development and the Abu Dhabi Investment Authority who own equal parts of the property.
The property is located within the 64 storey building in Tsim Sha Tsui, which is a major commercial and tourist district in Kowloon. The first Hyatt Regency Hong Kong was established way back in 1969. The current hotel in Tsim Sha Tsui opened in 2009 with a total of 381 rooms.
UOL Hong Kong Hotel Deal Under Discussion
The proposed UOL Hong Kong hotel purchase remains under discussion, and no final agreement has been announced. UOL has indicated that it regularly evaluates investment opportunities, while the terms of any potential transaction could still change. The parties involved have not confirmed that the deal will be completed.
For UOL, the acquisition would add another hospitality asset to its regional portfolio, which includes hotels and properties across Singapore, China and other Asian markets. The group operates brands including Pan Pacific and PARKROYAL.
New World Looks to Raise Liquidity
The potential sale comes as New World Development continues efforts to strengthen its finances and reduce debt. The Hong Kong developer has been pursuing asset disposals and other measures to raise liquidity following prolonged weakness in the property markets of Hong Kong and mainland China.
New World has also received approval to list a real estate investment trust in mainland China. The proposed listing is expected to generate about 3.24 billion yuan in net proceeds, which can be used for debt repayment and general corporate purposes.
Hong Kong Hotel Investment Draws Regional Interest
The potential UOL Hong Kong hotel transaction comes as regional investors continue to assess opportunities in Hong Kong’s hospitality market.
If completed, the transaction would expand UOL’s exposure to Hong Kong’s hospitality sector while allowing New World and ADIA to exit their interests in the property. However, the deal remains subject to negotiations and may not ultimately proceed.
