Stanley Ho plans HK$1b Marriott hotel at airport
Shun Tak Holdings, Macau gaming magnate Stanley Ho Hung-sun's property-to-shipping group, unveiled plans yesterday to build a HK$1 billion Marriott hotel at Hong Kong's airport, the group's first foray into the city's bustling hospitality sector.
Shun Tak will have a 70 per cent stake in the 658-room SkyCity Marriott Hotel with the remaining interest to be taken up by contractor Dragages Hong Kong, a subsidiary of France's Bouygues Construction.
Mr Ho's company already operates high-speed ferry services linking the airport to Macau and cities in the Pearl River Delta from a pier next to the hotel site.
Construction is scheduled for completion in the latter half of 2008. A second-phase development above the pier, which would add 342 rooms to the facility, is not included in the initial investment figure.
'We are keen to make our own contribution to Hong Kong's tourism boom,' said Shun Tak managing director Pansy Ho Chiu-king, Mr Ho's daughter.
The five-star hotel is a key feature of the Airport Authority's HK$2 billion SkyCity project, which includes two office towers, retail space, food and beverage outlets and a golf course on the land surrounding the recently opened AsiaWorld-Expo convention centre.
'The business environment in the area is expanding rapidly,' said Marriott International executive vice-president Paul Foskey. 'This is not a standard airport hotel going after only business travellers. It will also serve the [convention and exhibition] and leisure markets.'
While the hotel is Shun Tak's first in Hong Kong, it already has similar interests in Macau, owning 50 per cent of the Mandarin Oriental Hotel, 34.9 per cent of the Westin Resort and managing the Lisboa Hotel and Hotel Sintra.
Shun Tak is also the controlling partner in a 51-49 joint venture with Hongkong Land Holdings that will build a second Mandarin hotel in Macau as part of a HK$6 billion project that features residential and retail space. Next to that site is the MGM Grand Paradise casino resort, in which Ms Ho has a 50 per cent personal interest.
'The hotel market in Hong Kong is a pretty good one,' said Rob Hart, an analyst at Morgan Stanley who covers Shun Tak. 'Occupancies are high, room rates are moving up, the economy is doing well and there is not that much more hotel supply.'
Shun Tak will have a 70 per cent stake in SkyCity Marriott Hotel
Contractor Dragages Hong Kong will take up the remaining stake
The hotel is part of the Airport Authority's SkyCity project