Bass to buy the Regent Hong Kong Hotel for 346 mln usd cash

LONDON (AFX) - Bass PLC said it is to buy The Regent Hong Kong Hotel from the New World Development Company Ltd group for 346 mln usd in cash.

	     The transaction which is expected to complete by the end of August 2001, and see the hotel renamed Hotel Inter-Continental, Hong Kong, is expected to increase Bass' earnings in the first full financial year and will cover Bass' weighted average cost of capital by the third full fiscal year of ownership.

	    The hotel will will be managed by Bass with effect from June 1 2001.

	    Bass expects that in the financial year to June 2001 the hotel will generate EBITDA of over 31 mln usd, it added. 

	    Richard Hartman, Bass Hotels & Resorts' Managing Director, Asia Pacific Region, commented: "The acquisition of this prestigious 514 room hotel is an important step forward in the development of our business in the Asia Pacific region. 

	    "The Hong Kong market is very attractive as the economic fundamentals are strong and this hotel's competitive set is growing RevPAR at 12 pct per annum."

Related stock : (NIL)