PERCHED on a prime site in the Central business district, the Hilton hotel was ripe for the picking. One look at its nondescript exterior, noticeably dowdy among mirror-clad corporate neighbours twice its height and the writing was on the wall.
It didn't matter that only a year ago the interior was lavishly refurbished. Not even the $15 million marble lobby could save the gracious 30-year-old.
The Hilton sale was the latest and largest in a series of rumbles that began last year when hotels were snapped up for large sums of money only to be torn down to make way for commercial space.
If the Hilton is demolished - financial analysts say it almost certainly will be - then it will follow the Ambassador, China Harbour View and Lee Gardens hotels. All gone and forgotten, replaced by impersonal corporate towers, as will be the China Merchants and Fortuna hotels this year.
The big difference is that the Hilton is a five-star hotel and successful at that. The white marble staircases, Viennese chandeliers and Russian paintings will have counted for naught. Not even the high occupancy rate, elegant restaurants or faithful clientele will have mattered enough to save it.
Hutchison refuses to divulge its plans, but isn't denying the possibility of demolition. Head of corporate affairs, Laura Cheung, said vaguely: 'There are a number of options being considered by the company. We could continue to manage the hotel ourselves, but we are also looking at its potential.' Financial analysts say a demolition will set a precedent that is likely to seriously threaten other top hotels occupying prime turf. This move may even signal the death knell for hotels in the Central business district. It will further reduce the dwindling number of hotel rooms and push up rates at the remaining hotels.