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Peggy Sito

Cheung Kong (Holdings) and Hutchison Whampoa have joined forces in an attempt to create a new force in the international hotel management industry.

 The joint-venture company will initially operate Cheung Kong's and Hutchison's hotels in Hong Kong, the mainland and the Bahamas.

 The move comes at a time when the Asian hotel industry is under severe financial strain as the regional economic downturn brings about a fall in tourism and business travel.

 Dominic Lai, the managing director of the new venture - Harbour Plaza Hotel Management (International) - said there were plans to expand existing operations within two years.

 'Between now and late 1999, the hotel group will take up management of five additional hotels in mainland China, Hong Kong and the Bahamas,' he said.

 Mr Lai said the hotels were not new investments but existing projects under control of Cheung Kong and Hutchison.

 He declined to disclose total shareholder investments.

 'Together, the six hotels under our management will provide over 4,600 rooms by late 1999,' he said.

 One new hotel in Hong Kong the company will manage is the Harbour Plaza Kingswood, part of Cheung Kong's Kingswood Villas development in Tin Shui Wai.

 The hotel has 1,100 rooms and will be completed by the end of the year.

 In the mainland, the company will manage the Harbour Plaza Beijing, majority owned by Hutchison.

 The hotel is undergoing renovation and is scheduled to have a soft opening next month.

 Others include new Harbour Plaza hotels in Chongqing and Kunming, both jointly owned by Cheung Kong and Hutchison.

 The Harbour Plaza Chongqing would open this summer, while the Harbour Plaza Kunming would commence operations in spring next year, the company said.

 Harbour Plaza Hotel Management will also operate The Lucayan, a 1,600-room hotel on Grand Bahama.

 The hotel is being refurbished and is scheduled to relaunch in spring next year.

 The company will trade under the name of Harbour Plaza Hotels and Resorts.

 The new hotel in North Point is expected to be under the company's management when completed after 1999.

 But the list does not include Hutchison's 39 per cent owned Sheraton Hong Kong Hotel.

 Mr Lai said the company expected to be able to take advantage of the downturn in regional economies to acquire additional hotel management contracts.

 Harbour Plaza Hotel Management achieved an occupancy rate at its existing three hotels of about 80 per cent in January and February, he said.



Management alliance