HK hotel group expands into upscale London

Hong Kong and Shanghai Hotels to develop Grosvenor Place property.

HSH has agreed to spend US$205 million on a half-share of a new site near Hyde Park Corner. It is buying out Derwent London's 50% stake in a joint venture with Grosvenor Estates to redevelop 1-5 Grosvenor Place in Belgravia into offices and a luxury hotel.

Derwent London is expected to earn a profit of US$82 million on its share of the joint venture after Grosvenor extended its leases on the site to 150 years.

HSH is an investment holding company that owns Hong Kong's famous Peninsula Hotel and its sister hotels, the Peak Tram and other residential and commercial properties. Peninsula operates nine hotels around the world, most recently opening in Shanghai in 2009.

Derwent London is a leading British-based property investment and development business. It is headquartered in London and is a constituent of the FTSE 250 Index.