The Hongkong and Shanghai Hotels (HSH) is set to gain full ownership of The Peninsula Bangkok, through an acquisition of the remaining 50 per cent stake in a joint venture that operates the property.
In a press statement, HSH said that it plans to acquire the Phataraprasit shareholders’ 50 per cent stake in The Peninsula Bangkok and its surrounding land, for US$70 million in cash plus a 50 per cent stake in the Thai Country Club and nearby land parcels.
Upon completion of the deal, the company will assume full ownership and control over the development, management and future operations of The Peninsula Bangkok and its surrounding land. It will also cease to have any responsibility over the development, management and future operations of the Thai Country Club and its land parcels.
The company said that the restructuring is in line with its principal business of hotel ownership and management and reflects the desire of the company and the Phataraprasit shareholders to resolve all current and contingent disputes, including the dispute on the hotel management agreement relating to The Peninsula Bangkok.
HSH CEO and managing director Clement Kwok said that the decision was made in light of “the very challenging global and domestic market circumstances” and “the legal dispute between the partners”.