3rd May 2006 07:00
Millennium & Copthorne Hotels PLC03 May 2006 3 May 2006 MILLENNIUM & COPTHORNE HOTELS PLC M&C Hotels in Joint Venture to develop a new Millennium hotel in Beijing, the People's Republic of China Millennium & Copthorne Hotels plc ("M&C") is pleased to announce that itswholly-owned subsidiary, Millennium & Copthorne Hotels (Hong Kong) Limited ("M&C(HK)") has entered into a Definitive Framework Agreement (the "DFA") withBeijing Xiangjiang Xingli Real Estate Development Co., Ltd. ("XJXL") and otherparties. The DFA sets out the parties' intention to enter into joint venturearrangements to develop and operate a 5-star hotel (the "Hotel") right in theheart of the new Central Business District in Beijing, the People's Republic ofChina. The Hotel, to be called The Millennium Beijing, will comprise 28 levels with 520guest rooms. The Hotel is located at the Beijing Fortune Plaza mixed-usedevelopment site along Dongsanhuan North Road in Chaoyang District, which is inthe heart of the new Beijing Central Business District, and is also in closeproximity to the China World Trade Centre. Currently under construction, theHotel is scheduled to open in the first half of 2008, in advance of the BeijingOlympics. Construction of the frame of the building has already been completed. Subject to certain conditions, M&C will initially hold 30% of the Joint Venturealthough this is expected to increase to 70% by 31 December 2006. The totaldevelopment cost is expected to be approximately RMB 1.13 billion (approximately£77 million). Assuming M&C increases its share of the Joint Venture to 70%, itsproportionate share of these costs will be approximately £53.9 million. TheJoint Venture parties intend to fund the Joint Venture by way of capitalcontributions, shareholders' loans and financing from external financialinstitutions. The Millennium Beijing will become M&C's second hotel in China, following theannouncement of the management contract to operate The Millennium HongqiaoShanghai, a 350 bedroom 5-star property scheduled to open around August thisyear. Mr Kwek Leng Beng, Chairman of M&C Hotels, commented: "Securing the Millennium Beijing anchors our presence in China and is a keydevelopment in our stated aim to grow in Asia. The long term prospects for thisproperty are excellent due to the economic growth prospects both in China andespecially in the Beijing Central Business District. Furthermore, visibility forBeijing will be enhanced significantly with the impending Olympics in 2008,leading to more visitor arrivals to the capital." Enquiries: Tony Potter, Group Chief Executive +44 (0) 20 7872 2444Robin Lee, Senior Vice President Finance +44 (0) 20 7872 2444Millennium & Copthorne Hotels plc Ben Foster/Charlie WatenphulFinancial Dynamics +44 (0) 20 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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