The more interesting question out of all of this is what this acquisition could mean for the integration or application of blockchain technology in the hospitality space.
Sharing Economy International Inc., a Chinese textile machinery maker with blockchain ambitions, said it’s pursuing the acquisition of a boutique hotel from Hong Kong property billionaire Lee Shau-kee.
A unit of Sharing Economy is offering to buy the Mira Moon Hotel from Lee’s Hong Kong-listed hospitality company, Miramar Hotel & Investment Co., for about HK$1.35 billion ($173 million), Chief Operating Officer Parkson Yip said in a phone interview Tuesday. Yip said he hopes for a deal to be finalized by the end of next month.
U.S.-listed Sharing Economy, which has a market value of about $17.8 million, recently changed its name from Cleantech Solutions International Inc. as it started to pursue investments in businesses related to the sharing economy as well as blockchain technology. The Hong Kong-based company had $4.8 million of cash and equivalents at the end of September, according to data compiled by Bloomberg.
Sharing Economy said last week that a subsidiary entered into an exclusivity agreement to potentially buy a majority stake in Quik Ventures Ltd., which runs a platform for sharing underused office space.
Yip said the company is still considering how it could apply a similar business model to Mira Moon, a 91-room hotel near Hong Kong’s bustling Causeway Bay shopping district. Mira Moon is a part of Marriott International Inc.’s Design Hotels network of independent hotels and uses the hospitality giant’s Starwood Preferred Guest loyalty program.
A representative for Miramar said the company has no plans to dispose of the property.
Shares of Miramar have risen 2.4 percent this year, giving the company a market value of $1.3 billion. It also owns The Mira, a five-star hotel in Hong Kong where whistle-blower Edward Snowden stayed during his hideout in the city. Besides its hotels, Miramar operates several upmarket restaurants including Cuisine Cuisine and Tsui Hang Village.
Lee, 89, ranks as Hong Kong’s second-richest person with a net worth of $25.1 billion, according to the Bloomberg Billionaires Index. Miramar is 48.3 percent owned by Henderson Land Development Co., which is controlled by Lee’s family and ranks as the city’s third-largest developer by market value, its annual report shows.
Sharing Economy shareholders approved the company’s name change in December. The firm also makes dyeing and finishing equipment for the textile industry, its website shows.
©2018 Bloomberg L.P. This article was written by Vinicy Chan from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to firstname.lastname@example.org.
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Photo Credit: The Full Moon Residence at Mira Moon Hotel in Hong Kong. A Chinese blockchain-powered company is interested in purchasing it. Miramar Group
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