Hilton International may replace its Hong Kong hotel with two properties when the management contract is terminated at the end of January 1995.

Hong Kong Hilton general manager James Smith is negotiating on hotels in Kowloon and the New Territories, and said he would happily take on both with contracts for five or possibly 10 years.

For the longer term Mr Smith, also Hilton’s vice-president for China, is in negotiations with the developer of a new hotel being built on the Kowloon side.

The group has been looking for a new property in the colony since the owner of the Hong Kong Hilton, Hutchison Whampoa, announced plans to turn the site into office space.

It is paying Hilton $125m (£80.6m) in compensation for its 20-year operating contract, which earned a management fee of about $6m (£3.9m) last year (Caterer, 7 July).

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