Second Airport Hotel at HKIA Takes SkyCity Development One Step Forward

Hong Kong (HONG KONG INTERNATIONAL AIRPORT) - The Hong Kong International Airport (HKIA) and Union Sky Holdings Limited today announced the construction of the 1000-room second airport hotel which will provide travellers, tourists and exhibition visitors with a perfect place to unwind.  The new five-star hotel will be developed in two phases with the first phase, an investment of approximately HK$1 billion, targeted for completion in the second half of 2008.

Signing the agreement with HKIA in the new hotel initiative is the Union Sky Holdings Limited - a joint venture company in which Shun Tak Holdings Limited controls a 70% stake and Dragages Hong Kong Limited holds the remaining 30%. The new hotel, named The Hong Kong SkyCity Marriott Hotel, will be operated by the internationally renowned hotel management company - Marriott International, Inc.

The second airport hotel will be constructed on a 2.7-hectare site along the waterfront to the east of the passenger terminal. It will create approximately 750 jobs when it becomes fully operational, and will expand HKIA's capacity to accommodate the increasing demand from transit passengers, business and leisure travellers, exhibition goers and tourists.

In addition to comfortable guest rooms containing the latest in-room technology, the Hong Kong SkyCity Marriott Hotel will offer extensive meeting facilities, various dining and entertainment options with three distinct restaurants plus a lounge, and numerous recreational facilities, including an indoor swimming pool and a health club and spa featuring a gym, treatment rooms, saunas, steam rooms and whirlpools.

Being the latest addition to the visionary SkyCity development, the second airport hotel supplements the already comprehensive range of SkyCity projects including the ultra-modern exhibition facility AsiaWorld-Expo, the nine-hole golf course and the soon-to-be-opened Terminal 2, which is a true multi-modal hub where rail, road, air and sea transport seamlessly converge. Terminal 2 will also house the shopping and entertainment mecca SkyPlaza.

Speaking at today's signing ceremony, Chief Executive Officer of the Airport Authority Hong Kong Dr David J Pang said, "Building the second hotel at the HKIA marks another stride in the strategic development of SkyCity. We are at the forefront of a global trend whereby major airports are developed to become 'airport cities' in their own right." Dr Pang added that the second hotel will provide a timely supply of hotel rooms to meet the surging demand for accommodation at HKIA.

Shun Tak Holdings Limited's Managing Director Ms Pansy Ho said, "Combining Shun Tak's extensive network and experience in tourism and transportation, we hope to pool our diversified resources with the unique strengths from our partners, so that we can together make solid contributions to the promotion of tourism in the region, as well as share in the vibrancy of the robust economy across Hong Kong, Macau and the Pearl River Delta."

"Following the successful business model of AsiaWorld-Expo, we are glad to be awarded another 'design-build-finance-operate' type of contract.  The Hong Kong SkyCity Marriott Hotel project really strengthens us as the pioneer in Hong Kong offering full services from construction to project financing in partnership with clients," said Mr Benoit de Ruffray, Managing Director of Dragages Hong Kong Limited.

"The 5-star Hong Kong SkyCity Marriott Hotel with 658 rooms in the first phase will be positioned perfectly in the market at the 'quality-tier level' to serve the desires of both Hong Kong residents and visitors alike. The hotel's design will be very exciting and will take advantage of its waterfront location in SkyCity by offering excellent views of the South China Sea," said Mr Paul Foskey, Executive Vice President of Marriott International, Inc.

Other SkyCity developments including Terminal 2 and HKIA Tower are scheduled to open by the end of 2006, the Airport World Trade Tower and the golf course by early 2007, and the permanent SkyPier ferry terminal adjacent to the second hotel by 2008. AsiaWorld-Expo, also part of the SkyCity development, began its operations last year.

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