Real estate private equity firm, Gaw Capital Partners, announced that it has successfully led the acquisition of the InterContinental Hong Kong Hotel from the hotel’s current owner and management company, InterContinental Hotels Group on behalf of the purchaser, Supreme Key Limited. The US$938 million sale is one of the biggest hotel deals in terms of transaction value in Hong Kong’s history.
Supreme Key Limited is owned by Pioneer Global Group, and separate account investors advised by Gaw Capital Partners. The transaction is expected to close in the second half of 2015. It is Gaw Capital’s first separate account investment in Asia.
Formerly known as The Regent Hotel, The InterContinental Hong Kong is a flagship Hotel located in a prime location on Kowloon waterfront. As part of this deal, a significant additional capital improvement budget has been committed for refurbishing the property. As part of this long term strategic investment, Gaw Capital Partners will retain InterContinental Hotels Group to continue managing the property, whilst using its existing hospitality platform, GCP Hospitality, to enhance the asset management.
GCP Hospitality’s portfolio comprises 18 properties in Asia and US and includes flagship Hotel G properties in Bangkok, Pattaya, Hong Kong, San Francisco, Suzhou, Shenzhen and Beijing, as well as the legendary Strand Hotel and Strand Cruise in Yangon and the management of soon to be opened Roosevelt Macau.
Goodwin Gaw, Chairman and Managing Principal of Gaw Capital Partners, said, “We are delighted to have led the successful acquisition of this important Hong Kong property. We intend to fully leverage our extensive experience in hotel management to ensure that the InterContinental Hong Kong remains a world class location.”
Since 2010, Gaw Capital Partners has acquired 10 direct investments in London and the US on behalf of its separate account Asian clients, and this is the 11th separate account investment globally. Other notable separate account investments include 333 Market Street in San Francisco (Wells Fargo headquarters), Cupertino Gateway (one of Apple’s main campuses) and the iconic Lloyd’s Building in London.
