Hongkong and Shanghai Hotels Ltd. announced yesterday that it is in the process of considering several bids for its wholly-owned four-star Kowloon Hotel.

We've had several approaches, (and) we have to consider the option that enhances shareholders' value, said Manager of Corporate Affairs Kate Kelly, who noted that property consultant Jones Lang LaSalle has been appointed to manage the sale. Kelly did confirm, however, that no decision has been made at this point.

The Kowloon Hotel, located in Tsim Sha Tsui, Kowloon, has 736 rooms, with an occupancy rate of 93% for the six months ended June 30 and had an average room rate of US$72. UBS said that, at HK$2.5 million per room, the hotel's value – including the 40,000 square feet retail space at the hotel site – is estimated at HK$2.27 billion. A sale at this valuation would bring down the company's HK$4.5 billion net debt by half and would cut gearing to 16%.

Hongkong and Shanghai Hotels also owns and operates the luxury Peninsula hotels in Asia and the U.S., as well as owning some residential properties.