New World in US$80m hotels deal

PUBLISHED : Monday, 28 July, 1997, 12:00am
UPDATED : Monday, 28 July, 1997, 12:00am

New World Development Co (NWD) managing director Henry Cheng Kar-shun and two partners have paid US$80 million (about HK$619 million) for the New World group's hotel properties outside Hong Kong, China and Southeast Asia.


The purchase was made by investment company CTF Holdings, which is controlled by Mr Cheng, New World Infrastructure vice-chairman William Doo Wai-hoi and Cheng Kam-biu.


CTF bought the hotels on Friday from Hotel Property Investments, a wholly-owned subsidiary of NWD's 64 per cent-owned hotel arm, New World Hotels (Holdings). The deal leaves New World Development with no further hotel investments outside Hong Kong, China and Southeast Asia.


The price was calculated by reference to the consolidated net tangible asset value of Hotel Property plus a premium of about US$18.75 million.


NWD did not list the properties sold to CTF but it is understood that the hotels purchased fall mainly under the Renaissance or Ramada names.