Pioneer Global to buy Intercontinental HK in US$938 million deal
Pioneer Global will join hands with Gateway Capital to invest US$938 million to acquire the Intercontinental Hong Kong.
Pioneer Global Group’s director Jitai Wu said it will join hands with Gateway Capital to invest US$938 million to acquire the Intercontinental Hong Kong. The hotel also requires funding of US$240 million for renovation.
Room with a view: suite at the Intercontinental HK
Mr. Wu said the company will continue to pay attention to its Southeast Asian hotel and housing investment projects and it hopes for further collaboration opportunities with Gateway Capital in the future.
Mr. Wu said hotel room rates will be under pressure in the near future due to the economic slowdown on the mainland and the negative attitude of Hong Kong people and the media towards mainlanders, but the travel demand among mainlanders remains strong and his long-term outlook of Hong Kong’s tourism industry is still optimistic.
He also pointed out that the company’s Thai hotel operations had been affected by the recent bombings in Bangkok, with occupancy dropping 5%, but he is confident that its strategically located hotels will make a quick recovery.(Translation by David)