Chevalier to build hotel on mainland
CHEVALIER Development International Holdings (CDIL) is negotiating with Xinyang authorities to develop a $40 million hotel in Xinyang, near Wuhan.
The hotel, which will be the company's first in China, is expected to open at the end of next year.
CDIL, which will co-operate in the project with the Xinyang Real Estate Supervision Bureau, is expected to take a 70 per cent stake through a $30 million investment, and intends to manage the hotel for 30 years.
The three-star hotel will be the tallest in Xinyang and will comprise 567 rooms, a Chinese restaurant and a banquet hall. It will be aimed at the Chinese tourist market.
Deputy managing director Stephen Kuok Hoi-sang said the estimated return period on the investment would be about four years.
Mr Kuok expects Xinyang's development to accelerate rapidly, as it is at the heart of the road network between Beijing, Nanjing and southern China.
The Wuhan airport, to be located midway between Wuhan and Xinyang, would also benefit Xinyang, he said.
CDIL would not venture into five-star hotels in the near future, he added.
as this would involve too much investment with an unacceptably long return period.
