Emperor Entertainment Hotel Ltd, operator of Macau’s Grand Emperor Hotel and its casino, said Friday it has reached an agreement with its parent company to acquire a serviced apartments building in Hong Kong for HK$700 million (US$90 million).
Under the terms of the deal, Emperor E will acquire the building’s owner Star Omen Limited – a wholly-owned subsidiary of Emperor International Holdings Ltd – by way of a HK$150 million deposit followed by a secondary HK$350 million payment upon settlement. The remaining balance will be paid in seven equal quarterly instalments.
Emperor International holds a 71.63% stake in Emperor E.
The property in question is a 25-story apartment building located in Central, Hong Kong, constructed in the financial years ending 31 March 2023 and 31 March 2024.
Explaining its reasons for the purchase, Emperor E said it considers the transaction will “enable the group to expand its assets portfolio within the scope of its principal business, thereby further widen its revenue base and expand its market presence.
“Emperor E Hotel takes a positive stance towards the hospitality sector in Hong Kong and believes that the demand for serviced apartments will continue growing taking into consideration: (i) the New Capital Investment Entrant Scheme as well as various talent schemes introduced by the local government have attracted a huge number of applicants, covering talents, professionals, expatriates and their families from the Mainland China and overseas, resulting in a rise in long-stay hospitality demand; (ii) long-stay hospitality demand from the Mainland China and overseas students who are studying in Hong Kong; and (iii) business travels will stay active with Hong Kong remaining the key gateway for access to the Mainland China’s capital market and continuing playing an important role within the Greater Bay Area.
“Particularly after the resumption of international travels, the hotels have shifted back their focus from long-stay amid the pandemic to short-stay, thereby increasing the demand for long-stay in serviced apartments.”
Emperor International said the transaction would garner it net proceeds of approximately HK$654.5, thereby enhancing its financial position and the liquidity of Emperor International and saving up additional reserves for backing up its investment opportunities in the future.”
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