HPL buys American Indochina Resorts for US$65m

HOTEL Properties Limited (HPL), via its associated company VN NH Holdings, has entered into a sale and purchase agreement to acquire American Indochina Resorts Limited (AIRL) for US$65 million.

An investment holding company incorporated in the British Virgin Islands, AIRL owns AIR Residences, Indochina Resorts and Indochina Resorts Residences (Hoi An). Collectively, the AIRL group owns a five-star beachfront resort in Vietnam.

The US$65 million purchase includes assignment of shareholders' loans amounting to about US$8.5 million

Based on a valuation commissioned, the resort has a market value of US$66.5 million as at Nov 2, 2015.

The acquisition will be funded by internal resources of HPL and its joint-venture partner.