New | Peninsula hotel owner enters joint venture in Turkey
Company to take 50 per cent stake in Istanbul luxury project amid anti-Chinese protests
Hongkong and Shanghai Hotels, owner of the Peninsula hotels, will spend €150 million to develop a hotel in Istanbul with two Turkish partners, the company said in an announcement to the stock exchange on Tuesday.
The project, subject to approval, will entail an estimated total investment of €300 million and will be equally owned by Peninsula Istanbul Holdings and SLI, a joint venture between Turkish group Dogus Holding and private equity fund BLG.
The hotel will be built in the Salıpazarı Port located in the historic Karaköy area overlooking the Bosphorus strait between Europe and Asia, according to the announcement.
The announcement comes amid a wave of anti-Chinese protests in Turkey over China's treatment of ethnic Uygurs in Xinjiang province. China issued a travel advice to its citizens travelling to Turkey after several tourists were attacked in demonstrations there.
On Saturday, a group of Korean tourists were mistaken for Chinese and were attacked by Turkish demonstrators marching in a show of solidarity with Uygur Muslims, who have allegedly been barred from following Islamic traditions in the holy month of Ramadan.
Clement Kwok King Man, the chief executive of Hongkong and Shanghai Hotels, told the : "We are aware of the incidents last weekend. Such incidents that potentially affect tourism are of concern in any market where we operate. However, we take a very long-term view of Turkey and are positive on the future.
"Istanbul is a vibrant and beautiful city that embodies both ancient and modern cultures and has become one of the world's most popular tourist destinations."
In the announcement to the stock exchange, the company said: "This project is consistent with [our] long-term vision to invest and operate luxury hotels in strategically selected cities."
The company owns 10 Peninsula hotels, in Hong Kong, Shanghai, Beijing, Tokyo, New York, Chicago, Beverly Hills, Bangkok, Manila and Paris. Two more are being built in London and Yangon.
A spokeswoman for the company said the plan to develop the Istanbul hotel was based on long-term goals and that it was not only targeting Chinese tourists.
The company in May reported weaker business in all markets in the first quarter except for Bangkok and Tokyo, with waning mainland visitor numbers leading to a decline in occupancy rate at its Hong Kong flagship, its largest profit contributor.
