BASS HOTELS & RESORTS SETS THE JEWEL IN ITS ASIA PACIFIC CROWN WITH THE ACQUISITION OF THE REGENT HOTEL IN HONG KONG

Bass Hotels & Resorts (BHR) has significantly strengthened its Inter-Continental brand in Asia Pacific with the acquisition of the 514-room Regent Hong Kong Hotel from New World Development Company Limited group for a total cash consideration of US$346 million. The purchase represents a unique opportunity to acquire a landmark property in one of the world’s key gateway cities. The brand-defining property will further strengthen the Inter-Continental brand in the Asia Pacific region, where BHR is expecting to open further Inter-Continental properties over the next two years. It also supports BHR’s long-term Inter-Continental brand strategy to enhance a global brand presence complementing its hotels in leading global cities such as London, Paris, New York and Tokyo.

The hotel has been well maintained and managed by its existing owner and hotel operator and requires minimal capital expenditure to convert to an Inter-Continental. BHR believes that significant potential exists to improve the operational and sales performance of the hotel. Richard Hartman, Bass Hotels & Resorts’ Managing Director, Asia Pacific, said: “By leveraging BHR’s Global Sales and Reservations network, its loyalty programmes, Six Continents Club and Priority Club Worldwide, we can ensure significant value creation for our customers who choose the Inter-Continental brand in Hong Kong.

The hotel opened in 1980 and has since become a symbol of excellence in Hong Kong, located on the tip of Kowloon Peninsula with breath-taking views over Victoria harbour to Hong Kong Island. The hotel has some of the most extensive food and beverage operations of any Hong Kong hotel. Its restaurants provide a range of fine dining, and are especially renowned for superb European and Cantonese cuisine. In addition, the hotel claims the largest ballroom among Hong Kong hotels and also offers twelve spacious function and meeting rooms catering to business and social functions. It has been recognised year after year as one of the leading hotels in the world, and has won numerous awards of distinction for excellence in service and accommodation.

With this acquisition, Bass Hotels & Resorts now has two Inter-Continental hotels in Hong Kong. Also located in Kowloon, Tsim Sha Tsui East, is the Grand Stanford Inter-Continental, Hong Kong.

Richard North, Group Finance Director of Bass PLC, commented: "We are very pleased to have secured such an important hotel at such an attractive price. This acquisition meets all of our stringent investment criteria and will create significant value for shareholders."

Footnote: Following RevPAR growth of over 20 percent in 2000, top tier hotels in Hong Kong have shown continued strong growth of over 12 percent in the first three months of 2001. Visitor arrivals, having grown by over 15 percent in 2000 have grown by nearly 8 percent in the first three months of 2001. This is in line with the Hong Kong Tourist Boards forecast for the full year.