Hong Kong's new giants

Chapter 230 [Manila 'Hilton' Raiders] (Please subscribe! Please ask for a monthly pass!)

On Thursday morning, Lin Zuhui came to the headquarters of Cathay City Hotel Management Company.

As the flagship hotel management company of New Era Group, Cathay City does not place its headquarters in 'China Property Center', but uses its own office property in Wanchai.

There are only dozens of management and staff in Cathay City. At present, foreign management accounts for one-third, and even the president has become a British citizen. A high-level position in the group is regarded as a promotion.

Lin Zuhui came to his office, picked up the newspaper on the desk and read it.Regardless of whether he comes to this company or not, his subordinates will prepare every day's newspaper.

Picking up my own financial professional newspaper "Economic Daily", there is a big news on the front page: Yu Pinhai, the board director of the listed company Zhiren Consulting Management Co., Ltd., has repeatedly committed theft, counterfeit checks, illegal He was sentenced to two years in prison minus one day for seven counts of using other people's credit cards and possession of firearms.

NICE!

The reporter of "Economic Daily" finally obtained the evidence in Canada and reported the news.It is conceivable that this news will cause a stir in Hong Kong.

Although Yu Pinhai has not acquired Ming Pao Group at this time, he is also the chairman of the board of directors of a listed company.Before Zhicai Consulting Management Company goes public, Yu Pinhai needs to truthfully report the real history, and it is obvious that he will be in trouble.

The reason why Lin Zuhui wanted to destroy Yu Pinhai ahead of time even though he had a good relationship with Jin Daxia was because Yu Pinhai looked like Jin Daxia's dead eldest son, which was an inherent advantage.

He doesn't allow things to happen unexpectedly, so he can only ask the event to advance.

After a while, the president of Cathay City, Corbett, and the vice president, Li Mingtao, came to Lin Zuhui's office together.Cathay City uses a mixed management team of Huayang and Yang. As for the integration issue, Lin Zuhui is not worried, because Cathay City Hotel will soon develop overseas, and there is no time for intrigue.

What's more, Cathay City may be privatized by the New Era Group in May (not sure if the privatization will be successful), and the group has a greater voice.

"sit!"

Lin Zuhui arranged for the two to sit down while taking out a stack of documents from the briefcase.This information is from the management of Cathay Pacific City. It was handed over to Lin Zuhui two days ago, and it is about the "Hilton Hotel" in Manila.

Manila is the capital of the Philippines. The Hilton Hotel in Manila covers a very large area. If the political situation is stable and the economy is prosperous, the hotel is very profitable.

However, since February 1986, the Filipino people successfully overthrew the poisonous vegetables and established a new government. However, apart from the huge foreign debts left by the previous government, the politics are extremely unstable.In the mid-to-late 2s, there were six attempted mutinies.In addition to political and economic issues, the country has also suffered from many natural disasters, such as the Luzon earthquake, the eruption of the Pinatubo Volcano, the Visayas tsunami, etc. The energy crisis lasted for several years, making the Philippine economy virtually shut down.

The political situation is extremely unstable and the economy is extremely sluggish, making foreign capital flee the Philippines one after another.In this wave of withdrawal of foreign capital, the Hilton Group can no longer hold on.

At the beginning of the year, Lin Zuhui learned from a director of the 'Grand Hotel Group' that Phils, the major shareholder of 'Acesite', the parent company of the Philippine Hilton Hotel, wanted to sell the Hilton Hotel and withdraw from the Philippines.

Lin Zuhui immediately made a decision to pick up the leak, and arranged for Corbett and Li Mingtao to investigate and contact.

Because he knows that as long as he sticks to it for one to three years, the current investment may be fully recovered in one to two years, and the rest is his own profit.He remembered that the Philippine government implemented economic reforms in the early 90s, and then the economy began to explode.

"Now, Cathay City needs to make a plan immediately to take over the Manila Hilton Hotel through the stock market (Acesite is a listed company in the Philippines)!"

Corbett immediately said: "However, the cash in the company's account is only 500 million U.S. dollars. According to our analysis, this time it needs about 1500 million U.S. dollars to succeed!"

Cathay City originally had a cash flow of more than 3 million yuan, and all debts were repaid, reducing the debt to 7 million yuan!

1.1 million Hong Kong dollars, to buy a five-star hotel, and it is a five-star hotel with a large area, Lin Zuhui couldn't help laughing in his heart.The five-star hotels in Hong Kong, Los Angeles, and New York cost over HK$10 billion at every turn!
Lin Zuhui said with a smile: "Have you heard the story of Milken on Wall Street?"

Corbett said: "I have heard that he is the founder of the 'junk bond' acquisition method, and his influence is very large!"

Lin Zuhui nodded. Coincidentally, he had also studied Milken's acquisition methods.

In the 80s, mergers and acquisitions were blooming everywhere in the United States, and Milken was at the right time on Wall Street.Because in the 80s and [-]s, the inflation and unemployment rate in the United States climbed, and credit was severely tightened. In an instant, the high-return bonds in the investment portfolios of many fund companies were lowered by bond rating agencies and reduced to 'junk bonds'.At this time, Milken saw the business opportunity, and he set up a trading department for low-grade bonds in Drex Investment Company to invest in 'junk bonds', which, according to his previous life, was 'buying the bottom'.Later, Drakes issued a large proportion of loans in the form of "junk securities" to merge companies, that is, leveraged buyouts.

The acquisition method pioneered by Milken has affected a group of people, including Liu Luanxiong in the past two years.

"So, I plan to make a 'high-risk financial arrangement', using Cathay City as a guarantee, but the mortgage is the Hilton Hotel, borrowing $900 million from the bank, and transferring the debt to the Hilton Hotel. Then use the US dollar against the yen The price difference, the difference between the Philippine interest rate and the overseas interest rate, I estimate that the actual acquisition should only need 1200 million US dollars. In this way, our Cathay Pacific City only needs to invest 300 million US dollars to obtain a five-star hotel.”

For high-risk financial arrangements, the interest rate will rise to 12%~14% (currently 8%), but if the Hilton Hotel has an annual income of 25%, Cathay City can get a differential return of about 11%; The Hilton Hotel has grown steadily for 3 to 5 years, and the resulting differential return is even more impressive.

In fact, past life evidence stabilized in the Philippines by 1989.From this, it can be inferred that the Hilton Hotel in Manila was able to maintain a steady growth in profitability during the three years from 1989 to 1991; To a five-star hotel (the purchase price is very cheap).

Corbett and Li Mingtao were very convinced by Lin Zuhui's strategy, and they all nodded in agreement.

Next, Lin Zuhui began to arrange for the establishment of a working group for the two to quickly take over the Manila Hilton Hotel.

In the end, Lin Zuhui said: "Move quickly! The Philippines is just an opening for us to open up overseas expansion. My personal investment company has investigated good hotel projects in Canada and the United States. By then, Cathay City will usher in explosive development."

Time is money. Lin Zuhui will invest Hengjin Investment in the United States to search for hotel projects and hotel management networks in the United States and Canada, which will be used as a channel for Cathay Pacific's urban expansion.

Corbett is not only a hotel management talent, but also very proficient in the international development of hotels, so he took on the role of the team leader of the acquisition this time; and Lin Zuhui's personal investment company—Hengjin Investment, is the consultant for this acquisition. Assisting in the acquisition of Cathay Pacific City happens to also expand its business.

"Okay! BOSS! Guaranteed to complete the acquisition this month, after all, we have been preparing for more than a month." Corbett said confidently.

"Report to me anytime!"

"Ok!"

Lin Zuhui is naturally unwilling to go to a place as chaotic as Manila, so apart from participating in the "high-risk financial" loan in Xiangjiang, he can only determine his leadership position by grasping the progress of the project.

This year is a great development opportunity for New Times Group in the hotel industry, but he will not let go of this golden opportunity.

(End of this chapter)