HONG KONG (Reuters) - Mandarin Oriental International Ltd on Wednesday said it will not sell The Excelsior hotel for the time being as bids for one of Hong Kong’s most anticipated commercial real estate sales this year were too low, sending its stock down 30 percent.
The Excelsior is in the Causeway Bay shopping district overlooking Victoria Harbour, located on Lot No.1 - the first plot of land sold at auction after Hong Kong became a British Colony in 1841. Local media have reported its value at up to HK$34.2 billion ($4.4 billion).
“As the proposals have not provided the basis for the sale of the property at the current time, the company is continuing to review all options, including those that may result in redevelopment of the property into a commercial building,” Mandarin Oriental said in a statement.
A spokeswoman declined to disclose the number or size of bids received, citing confidentiality.
Shares of Mandarin Oriental tumbled as much as 32 percent to S$1.89 ($1.39) in Wednesday morning trade. Shares of its parent, trading company Jardine Matheson Holdings Ltd, were flat.
Reporting by Venus Wu; Editing by Anne Marie Roantree and Christopher Cushing