Unfinished hotels to get new ownership | Shanghai Daily

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December 5, 2009

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Unfinished hotels to get new ownership

HNA Group, parent of Hainan Airlines, plans to acquire an 85 percent stake in two uncompleted hotel towers in Shanghai's Xintiandi area from one of the towers' developers -- Leo Investment.

"The two sides have reached initial agreements on the deal, and they are expected to make substantial progress in the near future," an official of the group told Shanghai Daily yesterday.

He said that the deal will cost HNA more than 2 billion yuan (US$293 million), including interior decoration, much less than the former media reports of 4 billion yuan.

"It may take more than one year to put the hotel towers into operation," he said.

Construction on the hotel towers, which will be managed by the Jumeirah and Conrad hospitality companies, is almost finished, but the work has been suspended since early this year amid rumors that Leo Investment ran out of money.

Shui On Private Group owns the remaining 15 percent of the towers.

"In connection with Jumeirah HanTang Xintiandi, we remain fully committed to the project and continue to work closely with the owner/developer on a timeline for the opening," said Jumeirah Group in an email statement.

HNA Group, the country's fourth largest aviation group, aims to create a comprehensive group to deal in three key areas -- airlines, logistics and financial services.

It now owns 13 airlines, 11 airports, 51 hotels, five shipping firms, 13 finance companies and two business groups.

The group accelerated its development in Shanghai this year by purchasing two buildings in Pudong for a combined 3.2 billion yuan and setting up a business-jet company.




 

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