Peninsulas First Hotel in Europe to be in Paris

Travel News Asia Latest Travel News Podcasts Thursday, 29 January 2009

The Hongkong and Shanghai Hotels, Limited (HSH) and Qatari Diar Real Estate Investment havesigned agreements for the purchase by HSH of a 20% interest in a subsidiary of Qatari Diar which owns the building that currently houses the Centre International de Conferences on Avenue Kleber, Paris, France for a total cash consideration of approximately Euro 100 million (approximately HK$1,024 million).

HSH and Qatari Diar have agreed to re-develop this building into The Peninsula Paris hotel, upon completion of which the hotel and ancillary facilities will be managed by a subsidiary of HSH for a period of 30 years with an automatic renewal of a further 20 years, subject to meeting certain performance criteria.

The estimated total re-development project cost is expected to be financed through a combination of commercial borrowings and the resources of Qatari Diar and HSH in proportion to their respective shareholdings. Under the Shareholders Agreement, HSHs expected commitment to the re-development cost is approximately Euro 50 million (approximately HK$512 million).

Re-development of the hotel is scheduled to commence in the second quarter of 2009, following vacant possession of the building with completion expected by the end of the first quarter of 2012.

Sir Michael Kadoorie, Chairman of HSH, said, Paris is a strategic destination for the group and The Peninsula Paris most importantly will mark the companys first hotel in Europe. This hotel will complement our existing group of hotels which are all located in prime locations in gateway cities, and will follow the launch of The Peninsula Tokyo in 2007 and later this year, the opening of The Peninsula Shanghai.

Our Peninsula brand already enjoys high recognition within the global community. We hope that The Peninsula Paris will bring a new level of distinction to the Paris luxury hotel market. It is housed in a historic, magnificent building which will be a very special experience for our guests.

The propertys facilities will include 200 guestrooms and suites, all featuring the groups proprietary in-room technology system.

Located on Avenue Kleber, the building was originally constructed and opened in 1908 as the Majestic Hotel and is currently used as the Centre International de Conferences by the French Ministry of Foreign Affairs.

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