The party's over for the friends of heartbreak hotel

IT was a deal that put more than 700 people out of work and one of the finest dining venues in the territory out of business. But as the head of Lee Gardens International Group will tell you, it was also a handsome business offer which he found hard to refuse. ''The offer [to acquire Lee Gardens] now is almost $2.5 billion, plus, if the driveway can be built [upon], there is another $500 million, that is $3 billion altogether,'' said Sing Sheng, also the chairman and CEO of the hotel's management company. ''Put that in terms of profit, how many years do we have to work to achieve profit equivalent to $3 billion?'' ''Many''is the likely answer. Dwarfed by neighbouring commercial tower blocks, Lee Gardens' ordinary 70s architecture and dull exterior facade had seen better days. The 22-storey, 660-room hotel used to command a full view of the Victoria harbour and the airport runaway. Now, the Kowloon side skyline is only barely visible between skyscrapers. And this week, the hotel doors closed forever. In about two months' time, the whole building will be bulldozed to make way for a giant commercial project. Like the Lee Theatre, which was demolished in 1991, the Lee Gardens was acquired by Hysan Development from the Lee family - the single largest shareholders in both Hysan and the hotel - in March this year. The public company also owns the Hysan Avenue, Caroline Centre, Hennessy Centre, Sunning Plaza and Leighton Centre. It plans to spend about $4 billion to redevelop the hotel premises into a commercial complex similar to Pacific Place at Admiralty. Hysan had also agreed with Avenue Co Ltd to acquire the driveway in front of the Lee Gardens Hotel. The driveway with an area of about 10,000 square feet is intended to be redeveloped in conjunction with the hotel site, subject to planning approval. The last batch of guests handed in their keys and checked out earlier this week, but hotel staff will leave over the next eight weeks, taking with them memories of Lee Gardens' once colourful and splendid past. Over the years, the physical, as well as social, outlook of the Causeway Bay neighbourhood - one of Hongkong's most densely populated areas - has changed dramatically. ''When I first moved in here, Causeway Bay was an entertainment area, it was regarded as a shopping domain also, but strictly for locals,'' said Mr Sing. ''Local people used to come over here for theatres and restaurants and to do their shopping. The area has grown tremendously with new developments like the Time Square.'' In the old days, ''Lee Gardens'', named after its founder and patriarch of the Lee family, Lee Hysan, was a popular venue for family outings. Lee Hysan, a wealthy opium trader bought a piece of land on a hill (later known as the Lee Garden Hill) in the early 20s to be used for his business. However, the opium trade was made illegal several years after his purchase and the hilltop was flattened and turned it into a fairground attraction which was named ''Lee Garden''. Owing to the lack of business, the fairground was redeveloped in the 50s for commercial and residential purposes. This marked the beginning of the Hysan property empire. Lee Hysan was shot dead in Central at the age of 50, leaving behind seven sons and several daughters. Of his sons, R.C. Lee (1905-1983), the eldest, was a political heavyweight in the 60s when he was appointed to both the Legislative and Executive Council, while Harrod Lee (1909-1980) was best known as the co-founder of TVB. ''Naturally, it's a very sad feeling, like some people very close to you, or a friend, are suffering from a terminal disease, knowing that the demise is imminent and now you can count the days,'' said Mr Sing, a close family friend of the Lees. ''So it's very sad, especially [when] talking to some of the old colleagues who have been working here since day one. ''I remember the Rainbow Room, the eight big laterns, [which cost $100,000 each then], how much we paid for each chair in the Yum Sing Bar . . . obviously all these [expensive purchases] paid off.'' The Lee Gardens Hotel opened in 1971, the first of the three graded hotels built in the Causeway Bay area (the other two being the Excelsior and Park Lane). It was not only the tallest building in the area then, but also one of the few graded hotels run by Chinese. Mr Sing, 67, believes there are differences in the operation philosophy between the Lee Gardens and western-run hotels. ''Being Chinese run, I would say that the emphasis was very much on inter-human communication. I believe that not only managers but also the junior rank staff had a better sense of belonging to the hotel than a company that ran on a different [philosophy],'' he said. But perhaps what really made Lee Gardens a household name is its Chinese cuisine and restaurant - the Rainbow Room. ''Don't forget initially, in the 70s, especially the 70s, hotels did not feature or put emphasis on Chinese cuisine, and if so, the facilities of the Chinese restaurant were smaller,'' said Mr Sing. ''I think we are the first hotel that had a Chinese restaurant. That helped us to put the hotel on the map and a lot of the local dignitaries would use our facilities on this floor for entertainment and banquets.'' The long guest list speaks for itself. Chinese Vice-Premier Zhu Rongji, former US president Ronald Reagan, actress Elizabeth Taylor, pop legend Diana Ross and the late shipping tycoon Sir Y.K. Pao all graced its red carpet. Entertainers appearing at the Lee Theatre usually stayed at the Lee Gardens, but according to the hotel staff, the most memorable event was perhaps the Miss Universe Beauty Pageant back in 1976. ''That was very exciting, because that was on television worldwide. The Lee Theatre [where the pageant was held] was totally transformed . . . you couldn't recognise the place,'' Mr Sing said. But as the neighbourhood of Causeway Bay changed, the hotel also became more business orientated. ''Each hotel, of course, is after the high yield business. We also have business and commercial clienteles, especially in view of the change of the environment,'' Mr Sing said. ''This whole neighbourhood has changed tremendously over the last few years. Therefore, despite the fact that in last 21/2 years it may not be visible, but we have spent over $100 million on renovation.'' Despite the changes around the hotel, some 10 per cent of the employees have stayed with the establishment since 1971. Tommy To, 42, is among the six (out of 40) who have worked at the hotel's coffee shop for about 20 years. ''Leaving now is inevitable,'' said Mr To. ''Of course, deep down we don't want to leave. But, on the other hand, the closing down also gives us an opportunity to go out, to try new things.'' All staff who work till the end of July will receive a severance payment package which has been described by its own employees as ''very generous''. The hotel also helped staff in finding job replacements in other hotels in a two-day ''job bazaar'' last month. Mr To said that in its heyday, the Lee Gardens Hotel was the ''big brother'' in Causeway Bay. ''Then, there was the Excelsior and Park Lane Hotel. Times have changed and things are very different. I've spent more time here than with my family . . . sometimes I come in early just to read here. This place has been part of my life.''