Hotel Shilla to invest W186.5b in Hong Kong duty-free store
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Hotel Shilla will spend 186.5 billion won (US$166.74 million) for its duty-free store that is scheduled to open at Hong Kong International Airport in December.
With the opening of the store, Hotel Shilla will have a presence in Asia’s three largest airports including Incheon and Singapore. The hotel and duty-free operator will issue corporate bonds worth 200 billion won to finance the investment. Hotel Shilla won the license last month and will sell cosmetics and accessories. It plans to maintain the outlet until September 2024, it said in an investment prospectus.
The company has loaned 86.5 billion won to its wholly owned subsidiary Shilla Travel Retail Hong Kong and will also fund the remaining 100 billion won.
Questions & Answers
Q.Which specific product categories will Hotel Shilla offer at the new Hong Kong duty-free store?
Which specific product categories will Hotel Shilla offer at the new Hong Kong duty-free store?
The new duty-free store at Hong Kong International Airport will offer cosmetics and accessories to its customers. These categories are part of Hotel Shilla's planned retail offerings for the location.
Q.What is the planned operational duration for Hotel Shilla's new duty-free store in Hong Kong?
What is the planned operational duration for Hotel Shilla's new duty-free store in Hong Kong?
Hotel Shilla plans to maintain the outlet at Hong Kong International Airport until September 2024. This operational period was outlined in the company's investment prospectus for the venture.
Q.How will Hotel Shilla fund the total investment required for the Hong Kong duty-free store?
How will Hotel Shilla fund the total investment required for the Hong Kong duty-free store?
Hotel Shilla will finance the investment by issuing corporate bonds worth 200 billion won. Also, it has loaned 86.5 billion won to its subsidiary and will fund the remaining 100 billion won itself.