Langham Hospitality to spend US$1.5b on hotel buying spree
Great Eagle unit is to acquire 10 hotels mostly in Europe and the United States as it targets a portfolio of 500 properties over the next 10 years
Langham Hospitality Group, the hotel arm of Great Eagle, will earmark US$1.5 billion to acquire 10 hotels, largely in the United States and Europe, where asset prices remain attractive, as part of its expansion drive to build up a portfolio of 500 hotels in 10 years.
To achieve the target, the group will grow its portfolio through acquisitions and management contracts. It will also set up a new brand catering to middle-level business travellers on the mainland to bolster its presence there.
Robert Warman, chief executive of Langham Hospitality, said: "We are currently looking at acquisition opportunities in Washington, Miami, New York, San Francisco, London, Prague and Shanghai. We believe there are opportunities to invest in Europe and the United States, as property prices are still attractive."
There are opportunities to invest in Europe and the United States
He said the firm is conducting due diligence on a couple of the hotels and is in talks with the owners of the others or at the bidding stage.
Warman expects eight of the potential acquisitions to come under the Eaton brand, while two would become Langham hotels once they are acquired.
The group owns or manages 23 hotels, under The Langham, Langham Place, and Eaton brands, with more than 8,300 rooms.
It has more than 30 hotel projects either confirmed or in a developed stage of negotiations from China to India and the rest of Asia to the Middle East.
In Hong Kong, the group owns The Langham in Tsim Sha Tsui, Langham Place in Mong Kok and the Eaton in Jordan.