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Cheryl Arcibal

Hong Kong-based Chow Tai Fook Enterprises (CTFE), the private investment holding company of the Cheng family and the parent firm of debt-ridden New World Development (NWD), has no plans to sell its prized Rosewood brand, according to sources familiar with the matter.
“Rosewood has delivered exceptional results in recent years and is one of the family’s most cherished luxury hotel brands,” a source said.
The group’s properties were operating as usual, with strategic investments in nearly 30 countries across the world, the sources said. “CTFE undertakes regular reviews of its strategy to unlock long-term business value, including tangible assets,” the sources added, suggesting that while the Rosewood brand was untouchable, some of its other hotels might be available to interested parties.
Rosewood Hotel Group, a privately owned company, is one of the world’s leading global lifestyle and hospitality management groups. It encompasses four brands: ultra-luxury Rosewood; upper-upscale New World Hotels & Resorts; Asaya, an integrated well-being concept; and Carlyle & Co, a modern and progressive private members’ club. Its combined hotel portfolio consisted of 58 hotels in 26 countries with more than 30 new properties currently under development globally, according to its website.

NWD, the cash-strapped Hong Kong-listed arm of CTFE, operates a number of Rosewood hotel properties such as Rosewood Hong Kong, Rosewood Beijing and Rosewood Phuket in Thailand.
Rosewood Hong Kong, a waterfront hotel in Tsim Sha Tsui, was crowned the world’s best by a UK-based group this year, alongside Hotel de Crillon in Paris and Rosewood Castiglion Del Bosco in Italy.
NWD did not reply to a request for comment.
Rosewood Hotel Group is led by CEO Sonia Cheng Chi-man, daughter of Henry Cheng Kar-shun and CTFE’s chairman.
“In recent years, the group has achieved strong investment results in sectors such as energy, hospitality, healthcare and technological innovation,” a source said. The group continued to invest in its portfolio companies to reinforce their foundations and corporate cultures, the sources added.
NWD was not facing immediate pressure to sell Rosewood, according to Banny Lam, former head of research at CEB International Investment. “In the current market, the price may not offer much help to the company, and selling would instead strip the group of an important source of recurring cash flow,” he said.
Lam added that a refinancing completed earlier, along with a recent bond swap, had eased the developer’s near-term liquidity pressure. “As the property market begins to recover, they will be able to sell projects, receive cash injections and gradually work their way out of this debt issue,” he added.
An asset sale would help NWD, but its balance sheet was expected to stay weak given that its net gearing ratio remained above 80 per cent, said Jeff Zhang, equity analyst at Morningstar.
“We do not view the disposal of Rosewood assets would be adequate to resolve its liquidity issues, as the hotel projects very likely account for less than 10 per cent of the company’s total asset value,” Zhang said. “That said, asset sales coupled with the recent debt swap could provide additional support to NWD’s liquidity, so we do not expect the company to face any imminent credit event.”
NWD ramped up its effort to dispose of some assets following a record loss of about US$2.5 billion last year. Its short-term financial health stabilised after the company completed around HK$88.2 billion (US$11.3 billion) of the group’s loan deal in June and secured a HK$3.95 billion loan backed by its crown jewel asset Victoria Dockside in September. It also secured investor consent to swap 65 per cent of its perpetual bonds in an exchange plan.
Among the assets it sold was a 100 per cent equity interest in New World Sports Development, the developer of Kai Tak Sports Park, for HK$416.7 million, along with a HK$680 million loan to CTFE last year.
It also agreed to sell its shopping centre and associated parking spaces in D-Park mall in Tsuen Wan to rival Hong Kong developer Chinachem Group for HK$4 billion last year.
In mainland China, it sold a 30 per cent stake in the north tower of the Shenzhen Qianhai Chow Tai Fook Finance Centre to CTFE for 1.44 billion yuan (US$204 million).
Overseas, it let go of NWD’s Makati hotel in the Philippines in June for an undisclosed amount. On Thursday, CTFE agreed to sell Australian utility Alinta Energy to a Singapore-based group for A$6.5 billion (US$4.3 billion).
NWD, which has been battling liquidity problems for the past three years, reported losses for the second consecutive year amounting to HK$16.3 billion. This was more than 38 per cent higher than the HK$11.8 billion loss in the previous financial year from July 2023 to June 2024.
Additional reporting by Peggy Ye


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Hong Kong property

Rosewood hotel brand of Hong Kong’s Chow Tai Fook is not for sale, sources say

The Rosewood Hotel in Tsim Sha Tsui, Hong Kong. Photo:
Shutterstock

Rosewood Hotel Group is led by CEO Sonia Cheng Chi-man. Photo: May Tse

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A general view of New World Tower in Central, Hong Kong, on September 26, 2024. Photo: Jelly Tse

Echo Huang Shaomei, NWD’s recently appointed CEO. Photo: Sohu

Adrian Cheng, former NWD CEO, in a photo dated January 26, 2024. Photo: Edmond So

Chow Tai Fook sells Australian energy assets to Singapore group for US$4.3 billion

Alinta owns a portfolio of power-generation assets and a gas and electricity retail business throughout Australia. Photo: Handout

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The prestige brand has delivered ‘exceptional’ results, sources say, while suggesting that certain properties might be available


The prestige brand has delivered ‘exceptional’ results, sources say, while suggesting that certain properties might be available.


.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The prestige brand has delivered ‘exceptional’ results, sources say, while suggesting that certain properties might be available

The prestige brand has delivered ‘exceptional’ results, sources say, while suggesting that certain properties might be available