Korea’s Hotel Shilla will invest US$167 million developing its newly won concession at Hong Kong International Airport.
Hotel Shilla will take over the cosmetics and accessories licences at the airport in December after outbidding the incumbent, DFS Group. The contract extends until September 2024.
According to the Korea Herald newspaper, Hotel Shilla plans to issue corporate bonds worth 200 billion won to fund the new business.
The announcement of the concession in early April caused some surprise in the travel-retail industry, with incumbent DFS Group choosing not to bid to renew its liquor and tobacco concession at HKIA, and losing the perfumes and cosmetics concession to Hotel Shilla.
The liquor and tobacco concession was won by a joint venture between Lagardere Travel Retail and China Duty Free Group.
Hotel Shilla already has retail operations at Incheon Airport in Seoul and Changi Airport in Singapore. The Hong Kong business will be run by a wholly owned local subsidiary company Hotel Shilla Hong Kong.