NEW World Development plans to raise up to HK$1.89 billion with a listing on the New York Stock Exchange of its hotel management arm and a separate note issue. Managing director Henry Cheng Kar-shun said between US$100 million and US$125 million would be raised before expenses under the listing plan. A further issue of 10-year guaranteed notes would raise US$120 million, to pay US$65 million of New World Development Group debt. Mr Cheng said: 'The proposed re-organisation will consolidate in a company newly incorporated in the Netherlands, known as Renaissance Hotel Group, all the existing New World Hotels hotel management business and all the Ramada/Renaissance hotel management and franchise business.' After the changes the group plans to list Renaissance Hotel Group on the New York Stock Exchange. Mr Cheng said: 'Renaissance Hotel Group will therefore become the sole hotel management arm of New World Development Group.' The hotel management company will remain a subsidiary of New World Development after the listing, with an offer of between 20 per cent and 25 per cent of the issued share capital of Renaissance Hotel Group. Real estate interests of some of the companies coming under the new listing will be hived off into a wholly owned subsidiary of New World Hotels (Holdings), the new listing parent. Mr Cheng added: 'The directors of New World Development consider the proposed flotation of Renaissance Hotel Group will be beneficial to the New World Development Group [because] the proposed flotation is expected to enhance shareholder value by benefiting from the favourable market conditions for hotel management industry stocks.' He said the proceeds would give New World Development Group extra working capital. 'The proposed flotation will increase the visibility and stature of the management arm of the New World Development Group,' Mr Cheng said. After the changes, Renaissance Hotel Renaissance Hotel Group will be owned 20 per cent by the public, assuming a 20 per cent float, 12 per cent by connected parties and 68 per cent by Diamond Hotel Investments, a Netherlands company, 100 per cent owned by New World Hotels (Holdings). New World Hotels (Holdings) will be 64 per cent owned by New World Development Co. Hong Kong-listed New World Development is 62 per cent owned by shareholders and 38 per cent by Chow Tai Fook Enterprises. New World Hotels International will be the holding company for New World's Asian hotel businesses. Non-hotel businesses held by this company will be transferred to Master Services, 51 per cent owned by New World Hotels (Holdings) and 49 per cent owned by the connected persons. The hotel real estate interests of the group will be hived off and held under Hotel Property Investments Inc, a 100 per cent owned by New World Hotels (Holdings). Hotel Property Investments will have in its fold Ramada Holdings BVI and Renaissance Hotel Holdings BVI. The connected persons are Andrew Wong Kwok-kin, Wong Chi-keung, Ma Sai-on, Fong Shing-kwong, Leung Chi-kin, Chan Lam-ling, Paul Tong Yuk-lun, Alexander Chow Yu-chun, Chow Kwai-cheung and William Doo Wai-hoi.