Emperor Entertainment Hotel Ltd, which operates the Grand Emperor Hotel and casino in Macau, has agreed to acquire a 25-story serviced apartment building in Hong Kong for HKD700 million, the company announced late last week.
Under the deal, Emperor E will acquire Star Omen Limited, the owner of the Central district property, from its parent company Emperor International Holdings Ltd. Emperor E will make an initial HKD150 million deposit and pay another HKD350 million upon settlement. The remaining HKD200 million will be paid in seven quarterly installments.
Explaining the purchase, Emperor E said in a statement that “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.”
The company cited growing long-term stay demand in Hong Kong from mainland Chinese citizens under new immigration schemes as well as students and businessmen. “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,” the statement said.
The 69-unit building will boost Emperor E’s hospitality portfolio in Hong Kong and Macau. Emperor International, which owns 71.63% of Emperor E, will gain about HKD654.5 million in net proceeds from the deal. Staff reporter
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