Mandarin Oriental shares surge 21pc as it receives potential buyers for Excelsior Hotel

Shares of Mandarin Oriental International surged more than 20 per cent on Friday after the company announced it has received proposals from potential purchasers to acquire its iconic Excelsior Hotel in Causeway Bay.

“These will form the basis for further consideration of the company’s strategic options. A further announcement will be made as required. No assumption should be made at this time regarding whether the property will or will not be sold,” according to the statement issued by the Singapore-listed hotel operator.

The company’s shares jumped 20.75 per cent to close at S$2.56 on Friday.

The hotel operator said in June that it was undertaking a review of its long-term strategic options with regard to the Excelsior. As part of that review the company said it would test market interest in the possible sale of the property.

It is believed suitors for the four-star hotel include Sun Hung Kai Properties, Hysan Development and a joint venture between Chinese Estates Holdings and China Evergrande Group.

The 848-room hotel is likely to be valued at between HK$24 billion and HK$34.2 billion (US$4.38 billion), or between HK$35,000 and up to HK$50,000 per square foot, with a total gross floor area of 684,000 square feet (63,545 square metres).