Singapore-listed City Developments Ltd’s unit Copthorne Hotel Holdings has completed the acquisition of the Hilton Paris Opera Hotel for €240 million. The historic five-storey hotel, designed by French architect Juste Lisch in 1889, underwent a €43 million renovation in 2015. The 268-room hotel is located in the Paris central business district, near popular tourist attractions such as Galeries Lafayette and Printemps department stores.
The acquisition of the Hilton Paris Opera Hotel provides City Developments with a prestigious asset in a key European gateway city ahead of the Paris 2024 Olympics. The company’s expansion in Paris now includes three hotels with a total of 670 rooms, including the M Social Hotel Paris Opera and Millennium Hotel Paris Charles de Gaulle. City Developments aims to enhance its hospitality portfolio and increase recurring income through this strategic acquisition.
Despite rising interest rates, City Developments has been actively acquiring assets, including the historic St. Katharine Docks commercial property in Central London for £395 million. The company has also acquired hotel assets in Brisbane, Osaka, and Seoul. Much of the acquisitions have been funded by debt, leading to rising borrowing costs that have impacted the company’s profits. In 2023, CDL reported a 50% increase in revenue to S$4.9 billion, but net profit fell 75% to S$317.3 million primarily due to higher financing costs.
Kwek Leng Beng, the billionaire executive chairman of City Developments, also leads the Hong Leong Group founded by his father in 1941. His cousin Quek Leng Chan runs a separate group in Malaysia called Hong Leong Co. (Malaysia) with interests in finance, food, and property. Kwek, with a net worth of $11 billion shared with his family, was ranked No. 5 on Singapore’s 50 Richest list published in September. The acquisition of the Hilton Paris Opera Hotel adds to Kwek’s impressive property portfolio and further cements his influence in the hospitality industry.
The Hilton Paris Opera Hotel acquisition reflects City Developments’ strategic focus on expanding its presence in key global markets, despite challenges posed by rising borrowing costs. The company’s investment in prestigious assets such as the Paris hotel aligns with its goal of enhancing its hospitality portfolio and increasing recurring income. With a track record of successful acquisitions and a strong financial position, City Developments continues to be a prominent player in the international real estate and hospitality sectors, under the leadership of Kwek Leng Beng.
The completion of the €240 million acquisition of the Hilton Paris Opera Hotel marks a significant milestone for City Developments as it adds a trophy asset to its portfolio and strengthens its presence in the competitive European market. The historic hotel, with its prestigious location in the Paris central business district, offers potential for value-add and increased recurring income for the company. As City Developments continues to pursue strategic acquisitions and expand its global footprint, it remains a key player in the hospitality industry under the visionary leadership of billionaire Kwek Leng Beng.
