HSH announces closure of hotel at Quail Lodge Resort

Sep. 14, 2009 (China Knowledge) - The Hongkong and Shanghai Hotels Ltd<0045>, owner and operator of the Peninsula chain of luxury hotels, announced Wednesday that in November it will close the hotel at Quail Lodge Resort and Golf Club, which is run by Quail Lodge Inc, a wholly-owned subsidiary.

HSH said in a statement published on its website that Quail Lodge, which was acquired indirectly by the hotel operator in 1997, has received significant financial and management support from its parent but has booked losses for the past eight years.

The 97-room hotel will operate as usual until November 15, 2009.

The company has no plans to sell or redevelop the hotel, said Neil Galloway, chief financial officer of HSH.

HSH will keep the Golf Club and its clubhouse open to continue serving its member base of more than 300, but will discontinue some clubhouse services.

HSH recently announced that its fully-owned subsidiary, HSH Chicago Inc, bought a 7.5% stake in Peninsula Chicago LLC from Tower Summit LLC for US$11.7 million in cash. HSH Chicago now has full ownership control of The Peninsula Chicago, according to an earlier report from China Knowledge.