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.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 5 Men behaving badly: Urinating while standing, 'manspreading' and the gendering of selfishness
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Ellen DeGeneres leads Johnny Depp, Gwyneth Paltrow and Paul Bettany in revealing game of Never Have I Ever
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
British Muslim school children suffering a backlash of abuse following Paris attacks
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...