In mid-1993, Hutchison Whampoa Ltd (HLS), a reputable company based in Hong Kong, plans to demolish the Hilton Hotel to make way for a very lucrative office building. Hilton Hotel was one of the oldest and most famous attractions edge. He was wholly owned by HWL. To continue the reconstruction plan, HWL offered to compensate Hilton Group for early termination of its 50-year management contract. Compensation cost is estimated at U.S. $ 125 million. Before proceeding to the group to buy Hilton, executive director of development HWL hoped to convince himself and the directors that the deal was necessary, and that the reconstruction plan will be beneficial to both groups and its shareholders. This case explains the background of Grade A office rental market in Hong Kong and provides statistics to illustrate the main market trends and causal factors of more than 20 years. "Hide
by Frederik Pretorius, Maria Ho Source: University of Hong Kong, 17 pages. Publication Date: January 15, 2003. Prod. #: HKU247-PDF-ENG
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