Lai Sun Hotels (International) saw its shares drop 8.1 per cent to 34 HK cents following the sale of its interest in the Four Seasons Hotel in New York. Other companies in the Lai Sun Group also saw their stocks decline, with Lai Sun Hotels' direct parent Lai Sun Development (LSD) falling 4.16 per cent to 46 HK cents - below last month's rights issue price of 50 HK cents. Lai Sun Garment (International) lost 1.13 per cent to 43 HK cents and Lai Fung Holdings fell 5 per cent to 57 HKcents. Analysts said the fall in Lai Sun Hotels showed market concern over how the group would use the money raised from the disposal. 'Lai Sun Hotels could use the proceeds to buy certain assets of Furama Hotel from LSD, in a way to cut its parent's debts,' said one analyst. This was bad news for Lai Sun Hotels shareholders, he said. Kingsway SW Securities analyst Patrick Yiu Ho-yin said shareholders were also worried about a reduction in the company's ordinary income after the sale of the luxury hotel. On Wednesday, Lai Sun Hotels announced it had net US$137.5 million from the sale of its 49.99 per cent stake in Four Seasons Hotel. The sale would help the company reap an exceptional profit of HK$230 million for the year to December. According to the announcement, Lai Sun Hotels will use the net proceeds for working capital and 'if and when opportunities arise, for future investment purposes'. LSD and Lai Sun Hotels would not comment yesterday. Lai Sun Hotels' other option could be a special dividend payout following the gains from the hotel sale, analysts said. They expected Lai Sun Hotels shareholders - including mainland backed Cosco HK - to prefer the dividend payout option, although it was not the ideal method to improve LSD's financial position. Mr Yiu said LSD shares had been under pressure since the rights issue. He expected the stock to see resistance rising above 50 cents in the near future. Taking into account its high debt, the group's prospects would be cautious, he said. According to LSD, outstanding borrowings as of November 30 were about HK$11.65 billion.