Furama Hong Kong Hotel

History

The Furama Hotel was designed by Eric Cumine Associates and built for the Furama group and was completed on 18 August 1973. It had 33 storeys and a total height of 361 ft, with a revolving restaurant on the top floor named "La Ronda".

Inter-Continental Hotels Ltd. assumed management in 1976, and the hotel was named Hotel Furama Inter-Continental. In 1990 the hotel was acquired by Kempinski and renamed the Hotel Furama Kempinski Hong Kong.

Lai Sun Development (LSD) acquired the hotel's parent company, Furama Hotel Enterprises, in June 1997 for HK$7 billion. This was done by acquiring a 45.42 per cent stake for $3.13 billion, and a general offer at $33.50 for each remaining shares at a total cost of $6.893 billion. To finance the acquisition, the company geared itself up heavily taking on $5 billion in bank loans and issuing bonds for more than $2 billion.

While the other Furama Group hotels were integrated into the hotels division, Lai Sun Hotels, the Furama plot was to be combined with the Ritz Carlton plot, which it already owned, for redevelopment into a prime office block. Then the Asian financial crisis struck, plunging the entire group into distress and forced asset sales.

In March 2000, LSD announced that a 65% stake in the Furama would be sold to a 50:50 joint venture between Pidemco, controlled by Temasek Holdings, and AIG for HK$1.88 billion. As part of the deal, Lai Sun would continue to operate the hotel until its redevelopment, at an annual rental of HK$145 million.

References

References

1. "Furama Hotel [1973–2001]".
2. {{usurped
3. "Farewell, Furama Hotel Hong Kong!(1): Travel Weekly Asia". Travel Weekly Asia.
4. [http://www.hurriyetdailynews.com/default.aspx?pageid=438&n=kempinski-hotels----100-years-of-a-grand-tradition-1997-06-01 "Kempinski Hotels – 100 years of a grand tradition"], ''Hürriyet Daily News''. 1 June 1997
5. link. (2 November 2007 , ''The Standard'', 18 November 2002)
6. link. (22 May 2011 , ''The Standard'', 21 June 1997)
7. link. (22 May 2011 , ''The Standard'', 11 March 2000)
8. link. (22 May 2011 , ''The Standard'', 1 March 2000)
9. Together with [[CapitaLand]], and [[American International Group. AIG]], LSD formed Bayshore Development Group to develop [[AIA Central. AIG Tower]], a 39-storey commercial office block with a gross floor area of {{convert. 450000. sqft. link. (14 March 2012 , ''The Standard'', 30 July 2002)