Debt-laden Regal Hotels International Holdings is hoping the recent upswing in the luxury property market will boost the launch of its residential development in Stanley next month.
Director Donald Fan Tung said the company, which has a 70 per cent stake in Regalia Bay, hoped the sale of the development's 139 houses would boost revenue by $4.2 billion.
'This means our group's more than $6 billion debt, including the loan for Regalia Bay, will be decreased by two-thirds. It will ease a lot of our debt burden,' Mr Fan said.
Regalia Bay, in Wong Ma Kok, Stanley, is a joint venture between Regal Hotels and China Overseas Land & Investment. The houses range in size from 5,200 square feet to 11,000 sqft, and have been priced between $8,000 and $13,000 per square foot.
Mr Fan said the company was in no hurry to sell the houses because it was confident the upswing in the luxury market was a long-term trend.
He said the public sale of about 12 units would start from late next month to early December, while the company would hold roadshows in Shanghai and Beijing in late December to attract mainland buyers.