HONG KONG, June 17 Hong Kong-listed investment
firm Kai Yuan Holdings Ltd, which has interests from
steelmaking to real estate, has agreed to buy the Paris Marriott
Hotel Champs-Elysees for 344.5 million euros ($469 million).
Kai Yuan said in a stock exchange filing late on Monday that
on completion of the purchase, from French real estate company
MCE PropCo, it aims to target mainland Chinese travellers to
boost occupancy rates at the five-star hotel.
The company, which has a market value of $160 million, will
borrow $280 million from shareholder Du Shuanghua, who owns a
5.54 percent stake, to help finance the deal. Additional funding
would come from internal resources and bank borrowings, and the
transaction would be completed by September 5 at the latest, it
said in its statement.
Trading in shares of Kai Yuan, which has been suspended
since June 4, will resume later on Tuesday.
The hotel is located on the Champs-Elysees avenue, close to
the French capital's most affluent areas and main business
districts. The surrounding area is home of the offices of major
international law firms, banks and the United States and British
($1 = 0.7345 Euros)
(Reporting By Anne Marie Roantree; Editing by Kenneth Maxwell)