Peninsula Bangkok Legal Dispute Settled
The joint venture ownership struggle between Hong Kong and Shanghai Hotels and their Thai co-owner over the luxury Peninsula Hotel Bangkok has ended with a settlement.
In a release from Hong Kong and Shanghai Hotels, HSH will take over 100% equity in the hospitality asset. The 50% acquired economic interest in the hotel is valued at approximately USD70 million.
Thai group Phataraprasit Shareholders will continue to hold interest in the Thai Country Club with Peninsula retaining 50%, though the hotel group will no longer oversee the management or development of the club.
The compromise solution will remove the current legal issues between the two groups and also pave the way for both to probably look in the longer term at clawing back profits via real estate development.