Kai Yuan to Buy Paris Marriott Hotel for $468 MillionJoshua Fellman
Kai Yuan Holdings Ltd., an investor in Chinese steelmakers and real estate, said it agreed to buy the Paris Marriott Hotel Champs-Elysees for 344.5 million euros ($468 million).
The company will borrow $280 million from shareholder Du Shuanghua, who owns a 5.54 percent stake, according to a Hong Kong stock exchange filing yesterday.
The purchase of the hotel in France’s capital is the Hong Kong-based company’s second acquisition in six months. In December, it agreed to buy a 90-room, 32-story property in Hong Kong’s Sheung Wan district for HK$488 million ($63 million).
Kai Yuan gained 9 percent to 9.7 Hong Kong cents on June 3, its last day of trading before the stock was suspended. The shares have slumped 52 percent this year as the benchmark Hang Seng Index is little changed. The suspension of Kai Yuan’s shares will be lifted today.
The Paris Marriott purchase includes a 226 million-euro purchase of the real estate and a 118.5 million-euro acquisition of operating and holding companies, Kai Yuan said. Tamweelview European Holdings SA is the current owner of the hotel, according to the filing.
Marriott International Inc.’s agreement to manage the hotel is scheduled to expire in 2030 with automatic renewal for three periods of 10 fiscal years, Kai Yuan said.
The company has set a deadline of Sept. 5 for completion of the deal.