China Travel International Investment Hong Kong (CTII) has finally clinched a long-awaited deal to buy the Metropole Hotel in Mongkok from its parent China Travel Service (Holdings) for $910 million.
The move is part of CTII's plan to accelerate growth through acquisitions.
The purchase price represents a hefty 44.8 per cent discount to the open market value of the hotel of $1.65 billion.
Executive director Michael Ng Chi-man said: 'It is a much-awaited deal because it took the company a long time to negotiate for the best price.' The huge discount showed the parent's support of its listed vehicle, he said.
'It is just the first step to other things to come,' Mr Ng said.
The deal, to be financed by CTII's internal resources, has been approved by the State Council's Overseas Chinese Affairs Office which controls the parent.