ADIA will buy a 50% share of three Hong Kong hotels from New World Development Co. for HK$18.5 billion.

Abu Dhabi Investment Authority (ADIA) will buy a 50% share of three Hong Kong hotels from New World Development Co. for HK$18.5 billion (US$2.4 billion). Under the deal, New World will sell its interests in the Grand Hyatt Hong Kong, Renaissance Harbour View and Hyatt Regency Hong Kong hotel to a joint venture to be formed by New World and ADIA.

New World said it expects a gain of HK$15.5 billion (US$2 billion) from the sale of its majority interest, which will be used for development projects, expanding its inventory of land and working capital.

Renaissance Harbour View hotel in Hong Kong

J.P. Morgan & Co. served as the financial advisor to New World.