HSH buys remaining 7.5% stake in Peninsula Chicago

Sep. 14, 2009 (China Knowledge) - The Hongkong and Shanghai Hotels Ltd<0045>, owner and operator of the Peninsula chain of luxury hotels, announced yesterday that its fully-owned subsidiary, HSH Chicago Inc, bought a 7.5% stake in Peninsula Chicago LLC from Tower Summit LLC.
 
The Hong Kong-listed company paid US$11.7 million in cash for the deal.

Prior to the purchase, HSH Chicago held a 92.5% stake in Peninsula Chicago, which owns The Peninsula Chicago, a 339-room hotel located on Chicago’s Magnificent Mile.

HSH Chicago now has full ownership control of The Peninsula Chicago, which started operation in 2001 and has consistently been rated as one of the finest hotels in North America by consumer and travel trade media.

The Hongkong and Shanghai Hotels reported HK$462 million in net profit in the first half of this year, a plunge of 71.5% year on year, due to a significant drop in revenue from hotel business, according to an earlier report from China Knowledge.