Ladbroke receives pounds 82m boost from Hilton deal: Hutchison Whampoa buys out hotel management contract
Monday 24 January 1994
Hutchison Whampoa, the Hong Kong trading giant that owns the 750-room hotel, is to buy Ladbroke out of its management contract for dollars 125m. The contract has 20 years to run and is worth dollars 6m a year.
A Ladbroke spokesman stressed that the deal was done at Hutchison's instigation. 'The hotel has been one of our best performers and Hutchison are paying us a vast amount of money for an asset that is not in our balance sheet.'
It is understood that Hutchison is keen to redevelop the site following the sharp rises in Hong Kong property prices. But Hilton will continue to manage the hotel until next year and is now looking for an alternative property to manage under the Hilton name.
Peter George, Ladbroke's chief executive, said the deal underlined the value of the Hilton name and would make a useful contribution to reducing the group's debt.
Hilton has received a non-refundable deposit of dollars 12.5m with the balance to be paid on termination of the contract, which will take place no later than 21 January next year. Hutchison will then take over management of the hotel while it reviews its options for the site. Hilton has managed the hotel since 1963.
Ladbroke also confirmed yesterday that it was appointing two new non-executive directors to the board. They are Hugh Collum, finance director of SmithKline Beecham, and Derek Williams, a director of Cadbury Schweppes.
They join as part of the reconstruction of the board initiated by the new chairman, John Jackson, in the wake of the departure of Cyril Stein. Their arrival will bring the number of non-executives on the board to six, including Mr Jackson.
Mr Jackson has been trying to rebuild confidence in the group, which has been damaged by poor recent results, high debt and concerns about corporate governance.
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 3 School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
- 4 Amy Schumer: 'I'm 160lbs and can catch a d**k any time I want'
- 5 Isis executes three gay men by dangling them from top of 100ft building and letting go
Amber Peat: Body found in search for missing 13-year-old who left house after argument with her parents
School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
Amy Schumer: 'I'm 160lbs and can catch a d**k any time I want'
Isis executes three gay men by dangling them from top of 100ft building and letting go
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
Russian 'aggression' sees Poland rearm its military as minister warns: 'We must be ready'
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...