SINGAPORE (Oct 9): The Excelsior, Hong Kong will close on March 31 2019 for redevelopment, says owner and operator Mandarin Oriental International.

The redevelopment is expected to take up to six years to complete and cost some US$650 million ($899 million).

Once completed, Mandarin Oriental International says the new building is expected to generate significantly higher, and more stable, cash flows with less ongoing capital expenditure compared to a renovated hotel. The redevelopment itself is also not expected to adversely impact the recent level of dividends paid. The hotel is situated on a waterfront site in the Causeway Bay district of Hong Kong where the group has approval for the development of a mixed-use commercial building with a Gross Floor Area of some 63,500 sqm.

Read more on The Edge Singapore.