Far East Consortium International has bought the former headquarters of Xinhua news agency in Wan Chai for about HK$240 million and will convert it into a hotel, according to market sources.
Far East deputy chairman David Chiu Tat-cheong yesterday confirmed it was the buyer but would not discuss the acquisition price.
Mr Chiu said his group planned to convert the 23-storey building into a four-star hotel with 480 rooms at a cost of HK$400 million.
'It will be a very sleek hotel targeting young executives. The acquisition is in line with our positive view on the three-star and four-star hotel sector,' he said.
Located at 387 Queen's Road East, the 1970s building had been Xinhua's home for more than 20 years.
An official of Beijing Liaison Office, formerly known as Xinhua, said the Wan Chai building had been vacant since the firm had relocated to Sheung Wan last year. But he was not aware of the deal.