Park Hotel Group is close to selling New Astor Hotel in Tsim Sha Tsui to an unnamed buyer for about $280 million. The move makes it difficult for New World Development (NWD) to pursue a joint development on its own site next door. According to sources, the amount was higher than NWD's previous offer of $260 million for the property. NWD and Park Hotel Group are understood to be in dispute about the New Astor Hotel sale. NWD, through its agency, reportedly issued a letter of offer to purchase the hotel in March, and it is believed the Park Hotel Group replied by letter saying it was willing to accept the offer. The two sides never signed any documents of agreement for a deal. Park Hotel Group decided to tender the hotel last month. However, NWD director Stewart Leung Chi-kin said yesterday negotiations were still under way for possibly acquiring the hotel but no deal had been finalised. NWD has a development project, nicknamed 'Four Street', because it spans four streets next to the New Astor Hotel. The project's site area is 81,813 square feet while the New Astor's site is 7,149 square feet. NWD intended to build a serviced apartment-office-retail tower on the site. If it could combine it with the hotel lot, the enlarged project would be more attractive than separate developments, said analysts.
