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Shareholders of Hong Kong-based hospitality company Miramar Hotel and Investment have dismissed plans to acquire a property from Henderson Land Development, reported Reuters.
More than 53% of the company's shareholders voted against the HK$3.12bn ($401.11m) proposal, which was intended to facilitate the construction of a new hotel and commercial complex.
Located in Hong Kong's Tsim Sha Tsui district, the property was to be transformed from its current state as the 1957 vintage Champagne Court into a modern multi-story hotel and commercial complex.
Earlier this year, Miramar planned to demolish the existing building and develop a new multi-level hotel and commercial complex, reported Reuters.
This development was anticipated to alleviate the supply pressure on guestrooms at The Mira Hong Kong, another hotel owned by Miramar.
The inbound tourism market in Hong Kong saw 21.15 million visitors in the first half of 2024, marking a 64% surge from the same period of the previous year, according to a report from real estate services provider Colliers in September.
Meanwhile, Miramar Hotel & Investment Company disclosed last month the signing of a lease and licence agreement with Nation Star Development for premises at Mira Place 1, Tsim Sha Tsui, Hong Kong.
These agreements are considered continuing connected transactions and include terms such as a fixed one-year duration with an extension option, a rent-free period, and monthly charges.
The transactions are exempt from shareholder approval but are subject to reporting and annual review requirements.
"Miramar shareholders reject $401m acquisition of Henderson property" was originally created and published by Hotel Management Network, a GlobalData owned brand.
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