HK firm to buy Marriott Champs-Elysees hotel in Paris for $584.8m

HONG KONG (Reuters) - Hong Kong-listed investment firm Kai Yuan Holdings, which has interests from steelmaking to real estate, has agreed to buy the Paris Marriott Hotel Champs-Elysees for 344.5 million euros (S$584.8 million).

Kai Yuan said in a stock exchange filing late on Monday that on completion of the purchase, from French real estate company MCE PropCo, it aims to target mainland Chinese travellers to boost occupancy rates at the five-star hotel.

The company, which has a market value of US$160 million (S$200 million), will borrow US$280 million from shareholder Du Shuanghua, who owns a 5.54 per cent stake, to help finance the deal.

Additional funding would come from internal resources and bank borrowings, and the transaction would be completed by September 5 at the latest, it said in its statement.

Trading in shares of Kai Yuan, which has been suspended since June 4, will resume later on Tuesday.

The hotel is located on the Champs-Elysees avenue, close to the French capital's most affluent areas and main business districts. The surrounding area is home of the offices of major international law firms, banks and the United States and British embassies.