New World Development (NWD) has sold its 100 per cent stake in The Regent Hong Kong hotel to British hotel operator Bass Hotels & Resorts for a lower than expected US$346 million.
Analysts said they expected the move to help the developer reduce its net debt to HK$24 billion. The sale represents HK$5.25 million per room for the 514-room hotel.
Bass owns hotel chains including Holiday Inn and Inter-Continental Hotels and Resorts. The Regent will be renamed The Inter-Continental of Hong Kong as part of a rebranding exercise.
'We have been dealing with NWD for the hotel sale for over a year. Both parties will think this is a fair price,' said Richard Hartman, Bass Hotels & Resorts managing director, Asia Pacific.
He added that the acquisition would strengthen Bass' Inter-Continental brand in the Asia-Pacific region.
The sale was the hotel operator's second acquisition of a prime hotel in Hong Kong in the past four years.