Langham Hospitality Said to Seek $700 Million in Hong Kong IPO
Langham Hospitality Investments, a trust backed by Great Eagle Holdings Ltd. (41) hotels, is seeking as much as $700 million in an initial public offering in Hong Kong, two people with knowledge of the matter said.
Langham Hospitality, based in Hong Kong, began gauging demand for the IPO this week and plans to start trading late next month, said the people, asking not to be identified because the information is private. The trust may raise at least $600 million, they said.
The trust will be backed by hotels including The Langham, Langham Place Hotel and Eaton, all located in Kowloon district, according to a pre-listing filing to the Hong Kong stock exchange yesterday. The hotels have a combined 1,629 guest rooms, the document showed.
Citigroup Inc., Deutsche Bank AG and HSBC Holdings Plc are managing the offering, the people said. An external spokeswoman for Langham Hospitality declined to comment on the IPO.
Langham Hospitality boosted operating profit by 14.5 percent to HK$504.8 million ($65 million) last year, while revenue increased 8.9 percent to HK$1.6 billion as occupancy rates improved, according to the filing.
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