Pentahotel changes hands for $2b

Karen Ng

Wang On Properties (1243) has acquired Pentahotel Hong Kong in San Po Kong from New World Development (0017) for HK$2 billion through a joint venture with US private equity fund Angelo, Gordon & Co.

The property developer and AG plan to renovate and rebrand the hotel, which is expected to be unveiled in the market in 2024, said Nick Tang Ho-hong, executive director and chief executive officer of Wang On Properties.

Wang On Properties will own 35 percent of Pentahotel's equity interest while AG will own the remaining 65 percent.

Spanning around 23,900 square feet on the site at 19 Luk Hop Street, Pentahotel has 695 rooms with a total gross floor area of around 285,000 sq ft. Tang added that the acquisition is Wang On's first major investment in the hospitality sector.

After selling Pentahotel, New World Development still has five luxury hotels in its Hong Kong portfolio, including Grand Hyatt Hong Kong and Renaissance Harbour View Hotel adjoining the Hong Kong Convention and Exhibition Centre in Wan Chai, and Rosewood Hong Kong at the harbor front of Tsim Sha Tsui.