Article Abstract:
Hong Kong-based hotels are not likely to see a significant increase in profits despite the influx of tourist visits to the region due to the huge discounts that they have to offer. Lower hotel rates and affordable air fares accounted for an 81% rise in hotel occupancy in Dec 1998 compared with Dec 1997's 69%, benefiting three-star hotels the most, which has slashed rates by 45% to 55% since mid-1997. Some hotels are even worse off for having had to cut room rates to 1998 levels. Despite the discounts, Hong Kong hotel rates remain the highest in the region as these were aggressively increased between 1994 and 1997.
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Article Abstract:
The Trump Organization has forged an agreement with CDL Hotels International and Citicorp and Euro Disney SCA major shareholder Saudi Prince Alwaleed bin Talal bin Abdulaziz Al Saud for the transfer of ownership of the Plaza Hotel in New York, NY. Under the agreement, CDL and Prince Alwaleed will assume the financing of Plaza Hotel's $300 million mortgage debt from Donald Trump. Trump will continue to hold an equity position in Plaza Hotel but the returns will primarily go to the new investors.
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Article Abstract:
Some analysts encourage investors not to abandon Hong Kong and Shanghai Hotels Ltd, despite the ailing condition of the tourism industry. The company has been pummeled by decreasing occupancy rates across the region as a result of Asia's economic turmoil. This has affected the company's earnings and share price. The net profit for the first half of 1998 decreased 29% from a year earlier, with share price falling almost 70% since July 1997.
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