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Inter-Continental expansion in Hong Kong

Inter-Continental expansion in Hong Kong

Bass PLC ('Bass') today, 21st May 2001, announces that it has entered into agreements which result in Bass taking ownership of The Regent Hong Kong Hotel from the New World Development Company Limited group. The total consideration is £241 million ($346 million), in cash. The transaction is expected to complete by the end of August 2001. The hotel will be renamed Hotel Inter-Continental, Hong Kong and will be managed by Bass with effect from 1st June 2001.

Bass expects that in the financial year to June 2001 the hotel will generate EBITDA of over £22 million ($31 million). A very significant proportion of the hotel revenues derive from the food and beverage operations. The hotel is in excellent condition and will require minimal additional investment. On the basis of projections, this acquisition is expected to increase Bass' earnings in the first full financial year and it will cover Bass' weighted average cost of capital by the third full fiscal year of ownership.

Richard Hartman, Bass Hotels & Resorts' Managing Director, Asia Pacific Region, commented, 'The acquisition of this prestigious 514 room hotel is an important step forward in the development of our business in the Asia Pacific region. The Hong Kong market is very attractive as the economic fundamentals are strong and this hotel's competitive set is growing RevPAR at 12% per annum. Our expanded presence in Hong Kong further consolidates our position as the leading branded hotel company in China and provides greater access for the Inter-Continental brand into this rapidly growing economy. Furthermore the high visibility of this property will enable us to leverage the brand throughout the Asia Pacific region and further accelerate our existing strong development pipeline of Inter-Continental hotels.'

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For further information, please contact:

Richard North, Finance Director 020 7409 1919
Jonathan Atack, Investor Relations 020 7409 8153
Mark Rigby, Media Relations 020 7409 8105

Notes to editors:

Bass is an international leisure hospitality group operating in hotels, leisure retail and branded drinks.

  • Bass Hotels & Resorts is the world's leading global hotel group whose brands include Inter-Continental Hotels and Resorts, Crowne Plaza Hotels and Resorts, Holiday Inn, Express by Holiday Inn and Staybridge Suites. It owns, operates or franchises more than 3,000 hotels and 490,000 guest rooms in nearly 100 countries around the world.
  • Bass Leisure Retail is the UK's leading managed restaurant, pubs and bars group with some 2,000 outlets including brands such as Vintage Inns, Harvester, Toby, Browns, All Bar One, It's A Scream, O'Neill's, Edwards, Ember Inns and Goose.
  • Britvic Soft Drinks is one of the leading UK producers and distributors of branded soft drinks with brands such as Tango, Robinsons, Britvic and the UK franchise for Pepsi.

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