Chapter 226 Four Seasons Hotel
Yang Wendong thought for a while, and then asked: "Old Zheng, the Hong Kong government requires this piece of land to open a hotel. Is there any restriction on how long it will last?"
Zheng Zhijie He replied: “In 20 years, the Hong Kong government’s requirement for this piece of land is that any buyer can purchase it. After that, the hotel needs to be built and opened within 2 years, and then operated for 20 years.
After 20 years, the Hong Kong government will no longer care about the use. It can continue to be a hotel or used for other purposes.”
< br>"Twenty years! Not bad." Yang Wendong nodded and said.
Twenty-two years later, it happened to be 1983, the lowest period of real estate. It was unlikely to lose money after 20 years of operation. After 1983, it could be demolished and built into a super building.
If the hotel business is good, some floors of the future building can also be used to continue operating hotels.
This piece of land covers an area of 38,000 square feet. It was born to build skyscrapers. However, in the 1960s, the tallest buildings generally had more than 20 floors. The times were not right yet, so we could only wait until later.
Zheng Zhijie asked again: "Yang Sheng, you have to submit hotel information when bidding for this land, so we can choose to cooperate with an international hotel management giant, or register a brand ourselves and operate it ourselves. You see ?”
“We operate it ourselves,” Yang Wendong said without hesitation.
International hotels generally like to trick people, using various methods, and Yang Wendong even knows some of them.
Of course, under normal circumstances, these hotel brands will also allow investors to make a little money, not because of conscience, but for sustainable cooperation with other owners.
The most important thing is that most of this cooperation lasts for more than 20 years. In his previous life, Lao Li tried his best to get back the management rights of the hotel property, using some shameful means, and also The hotel is really too strong.
Zheng Zhijie asked again: "Okay, what is the name of the hotel, Changxing Hotel?"
"No, this name is not good." Yang Wendong shook his head and said: "Real estate, shipping, etc. are very important. Civilian companies can use Changxing directly. Although hotels are also considered part of the real estate industry, they still mainly deal with ordinary customers and are considered civilians.
Let me think about it and I will tell you after I think of the name. Or you can think of some names and I will take a look. "
"Okay, Yang Sheng. Zheng Zhijie agreed: "Then I will prepare other information first." "
"Well, when will the bidding take place? "Yang Wendong asked again.
Zheng Zhijie replied: "It will be in November. The Hong Kong government has deliberately postponed the bidding time this time. It is probably to attract more overseas consortiums to participate in the bidding. It is estimated that the revenue from this land sale will be , can account for a large part of the Hong Kong government's finances. "
"Yes. Yang Wendong nodded: "This 38,000 square feet of land is more expensive than our 8.5 million square feet of land in Kwun Tong." ”
The Hong Kong government has light taxes, but a government naturally needs fiscal revenue, so land sales account for the bulk of the Hong Kong government's revenue. However, this proportion was not large in the 1960s and was far less than in the 1980s.
But other taxes are basically fixed, and follow the economic fluctuations. If the economy is good, you will receive more, and vice versa. Only real estate can be adjusted. The more you sell, the more money you will get.
However, in order to harvest leeks in the long term, the Hong Kong government released land in a planned way. If it releases too much land, it will be worthless and the total income will be reduced. If it releases too little, the total income will be reduced. There is a balance in everything.
……
In the evening, after returning home.
Yang Wendong teased his son again, and then informed Su Yiyi about the hotel.
"38,000 square feet? Or is it on Queen's Road in Central?" After listening to this, Su Yiyi asked: "Then the bidding for this piece of land is not more than 30 to 40 million Hong Kong dollars."
" Almost." Yang Wendong nodded and said: "The land price in Central is considered cheap. I guess this is because we can only build hotels, otherwise the price may be higher."
Although the hotel is also asset-heavy and well-run. The income is not bad, but after all, there are restrictions. Many consortiums may not be interested in hotels, so they will naturally not participate.
Office buildings are much better. The demand for these things is greater. If you use them to buy real estate, you can collect rent stably in the long term. The money you collect may not be more than what you earn in a hotel, but the advantage is that you have less to do, and if you use it to cash out Selling off-the-plan properties and office buildings are also very convenient.
"Then you want to open a hotel?" Su Yiyi asked again.
Yang Wendong said: "Originally I didn't want to build a hotel so soon, but it would be a pity to lose such a large piece of land if we miss it."
The hotel is actually It is also a part of real estate. The special point is that it is regarded as half a "civilian commodity", just like a supermarket.
The existing large consortiums in Hong Kong, or the four major families in the future, will basically enter the hotel industry after they have achieved success in the real estate industry. Even if they have a few hotel properties, the most powerful ones will be It is a hotel chain brand.
At present, the scale of Changxing Real Estate is not small among Chinese investors. There are 9 buildings on Hong Kong Island, for self-use or rental, 4 residential communities under development, more than a dozen cinemas, and a large number of old buildings in Kwun Tong. Building properties, etc.
Originally, he had thought about building his own hotel in a few years when it got bigger, so that he could invite others to meet and discuss things. It was always more convenient to have his own place.
It’s just that the plan couldn’t keep up with the changes. He didn’t want to let go of such a prime location.
Su Yiyi asked again: "Can these tens of millions of investments be financially sustainable? Our debts are already quite heavy during this period, right?"
"The debts are indeed not small. , but it’s not much.” Yang Wendong smiled and said, “Don’t forget, Changxing Industrial now has a net profit of 3 to 4 million yuan a month. This year, it will be at least 30 to 40 million yuan in profit. br>
Just for this factory, if we mortgage it for 100 million, it won’t be a big problem, and Changxing Real Estate itself has gradually become profitable. ”
As the cash cow of Changxing Group, Changxing Industrial can easily attract money around the world with its three popular products: sticky notes, sticky hooks, and railing boxes. Even if there are many piracy problems, this only results in a partial loss of profits.
Compared with the shipping industry, entry into the real estate industry is much simpler, especially when it comes to purchasing properties and then collecting rents, as well as the development of residential areas. Changxing Real Estate has taken advantage of the rising housing prices to make profits. Not difficult.
Su Yiyi nodded and said: "Then I think we can compete for it. You also said that the land in Central is available in small quantities, and if our group has a big hotel in Central, It’s also a symbol of strength.”
“Yes, it’s the name of this hotel that makes me a little confused. "Yang Wendong smiled and asked: "Yiyi, which name is better between Four Seasons Hotel and Shangri-La Hotel?"
When he heard the name of the hotel before, he thought of the name of the famous hotel in his previous life. Most of them existed before the 1950s, but Four Seasons and Shangri-La had not yet appeared.
He had stayed at these two hotels several times in his previous life, and it could be said that he liked them both better.
"Four Seasons? Shangri-La?" Su Yiyi thought for a while and said: "The names sound good, do you want to decide now?"
Yang Wendong nodded and said: "Submit as soon as possible When applying for an auction, the hotel name is required and it needs to be registered as a company.”
Su Yiyi said: "Then I still think the Four Seasons Hotel is better. When translated into English, it is also fourseason, which sounds very smooth.
Shangri-La is in Chinese, and I guess many people don’t know what it is in English. , and not everyone knows Shangri-La.”
Yang Wendong nodded and said: "Yes, even an illiterate person knows what the Four Seasons is, and Shangri-La is indeed far inferior."
Su Yiyi added: "But the name of the Four Seasons Hotel seems a bit ordinary. ”
"Haha, whether a hotel is ordinary or luxurious depends on its operation." Yang Wendong said with a smile: "Do you think Hilton, a hotel named after a surname, sounds luxurious?"
"Yes." Su Yiyi nodded and said. Yang Wendong said: "Then it's called Four Seasons. In the future, I will also pursue a high-end positioning. I will open one in Hong Kong first, and then go overseas when I have the ability.
Maybe I can build a world-class five-star hotel chain like the Hilton Hotel. ”
The Four Seasons Hotel in the previous life was well-known, but the number was not very large. This may be because its founding team had limited funds and did not expand too much in the 20th century.
And wait until the 21st A century later, brands such as Hilton and Intercontinental have already occupied many places, leaving no chance for latecomers to become bigger.
Su Yiyi said with a smile: "Then we are not allowed to invest overseas? "
"Well, one Hong Kong cannot accommodate several hotels. Yang Wendong nodded and said: "But this will happen a long time ago. Now we should consider the present and win the land on Queen's Avenue first." ”
Although the first motive for this investment was for land, once you start the hotel business, you will definitely develop in this direction.
Su Yiyi asked again: "Then why look for a Chinese bank? Wouldn't it be better to look for HSBC and Standard Chartered?"
Yang Wendong explained: "This is mainly about balancing issues. One is If my loan requirements are not risky, I can win over the bank.
The second thing is that I can't just stick to one bank. For loans, I have borrowed a lot of money from HSBC for my previous investment in Kwun Tong. Zheng Yuhua from Changxing Shipping recently told me that he hopes to consider buying new ships for shipping. For these foreign-related loans in the future, I should still look for HSBC and Standard Chartered. From the bank.”
“Are you going to buy a new boat?” Su Yiyi asked: “Isn’t it more convenient to buy a second-hand boat?”
Yang Wendong replied: "Convenience is convenience. I will continue to buy second-hand ships, but I am also considering new ships, because if I want to expand in the shipping industry, I can't just rely on second-hand ships."
Second-hand ships There are too many restrictions on ships, and there aren’t that many old ships with low prices but similar quality.
More importantly, the Middle East crisis in 1967 is coming soon, and it is easier for new ships to seize this benefit.
Su Yiyi nodded and said: "Oh, I heard that many Hong Kong shipowners buy ships from Japan."
"I should also go to Japan to buy ships." Yang Wendong nodded. .
In this era, the most cost-effective ones are Japanese ships, which are 30-40% cheaper than those in Europe. In addition, they are close and provide convenient after-sales service.
In addition, Japanese banks will also participate in loans, but Japanese banks will also control risks and may not necessarily lend in full. Therefore, many of Hong Kong's shipping kings also need to rely on large local banks.
"Yeah." Su Yiyi didn't ask any more questions.
He also knew that Yang Wendong was very interested in real estate and shipping.
Yang Wendong smiled and said: "After a while, I may go to Japan to see the ships, and then I will also take you to Japan to have fun."
"Okay." Su Yiyi agreed.
......
The next day, Peninsula Hotel:
Yang Wendong met He Shanheng from Hang Seng Bank and said with a smile: "He Sheng, I heard that Hang Seng's business has been pretty good recently. Huh?”
“Haha, it’s okay.” He Shanheng replied: “But it’s far worse than Yang Sheng. You are the name in the news media recently.”
Yang Wendong said: "Our Chinese enterprises in Hong Kong can develop so fast because they rely on Chinese banks. Otherwise, we don't know how long it will take to develop."
This is also true, although finance itself does not generate value. , but it must be there, otherwise the industry will not develop. Even if Yang Wendong had an idea that would make money in the early days, without the starting capital from the bank, it would probably take many years to develop.
"Mutual benefits, our bank is also good for it." He Shanheng paused and then asked: "Yang Sheng is so anxious to ask me out. Could it be that he wants to have some big cooperation with Hang Seng?"
"Yes." Yang Wendong nodded and said: "The land at No. 2 Queen's Road, He Sheng should also know, right?"
"Yang Sheng wants to take over that piece of land?" He Shanheng is naturally a smart person, and then asked: "But the Hong Kong government has restrictions on that piece of land, and only a hotel can be built. , does Yang Sheng want to run the hotel by himself, or hire an overseas company to manage it? ”
"Is there any difference?" Yang Wendong asked.
He Shanheng replied: "There is a difference. If it is managed by an overseas giant, there will be contractual restrictions. Coupled with their many years of management experience, the risk of my bank will be much smaller.
If Yang Sheng manages it yourself, we won’t have much confidence?”
Yang Wendong asked again: “The Peninsula Hotel is also managed by the Kadoorie family, and the income is quite high. Right?"
He Shanheng replied: "That's true, but it's the result of many years of business and it's famous, so it's still different."
Yang Wendong said: "The person I want to recruit him has management experience. As for fame, I have a media company under my banner. It is not difficult to promote it."
"Yang Sheng has media, indeed. It's an advantage." He Shanheng nodded and said, "Since Yang Sheng has decided to run it by himself, I won't say more.
I don’t know how much loan Yang Sheng needs?”
Yang Wendong said: “The current bidding price is not yet certain, and I can’t say the exact value, but I estimate it will be around 30 million Hong Kong dollars. "
"This data accounts for almost 5% of our bank's deposits," He Shanheng said.
Yang Wendong smiled and said: "It's a lot, but after all, it is 38,000 square feet of land on Queen's Road, and it is worth this price.
And I am very optimistic about Hong Kong's economy in the future. I want to build a large five-star hotel. In terms of income, it is unlikely You will lose money.”
The advantage of the time traveler is indeed not very helpful for operating the hotel itself, but as long as Hong Kong’s economy develops rapidly and there are more and more tourists from home and abroad, it can be operated in Hong Kong, which lacks luxury hotels. If you are losing money, you are probably a talented person.
Of course, the real estate crisis of 1966-67 does not count, there is nothing we can do about it.
He Shanheng thought for a while and said: "Yang Sheng, I can promise to give you 70% of the final transaction price of this land as a mortgage, but I still need to negotiate internally on the interest rate."
"Okay, such a big thing cannot be decided immediately." Yang Wendong added: "But there are many choices on my side, and in the end I will only choose the one with the most suitable conditions."
"Understood." He Shanheng nodded and said.
……
PS: Please give me a monthly ticket.
(End of this chapter)