In Hong Kong, we build a global business empire

Chapter 709 To be honest, I have my eye on the Peninsula Hotel!

In a luxurious conference room at the headquarters of Standard Chartered Bank's Hong Kong branch.

At this moment, Brown, Li Jiacheng, Laurence Kadoorie, Henry Keswick, and others gathered here once again.

At this moment, everyone present wore smug smiles.

Brown picked up a glass of red wine, swirled it gently, and smiled: "Ladies and gentlemen, our luxury hotel alliance is now showing initial results, as evidenced by the declining occupancy rate of the Mandarin Oriental Hotel Group."

I imagine that Mr. Li and Mr. Kadoorie's hotels have seen a significant increase in occupancy rates lately, haven't they? Next, we should capitalize on this momentum and give Lin Haoran a taste of his own medicine in other areas as well.

Li Jiacheng nodded slightly, a hint of ruthlessness in his eyes: "That's right. Although Lin Haoran is powerful, we cannot show weakness. He has a vast network in real estate, trade, finance, retail, and ports, but there are also many loopholes."

He's gone too far, trying to swallow up the entire market. If we don't fight back, we'll all be finished sooner or later. Our plans have definitely been leaked out these days, but the Mandarin Oriental Hotel Group can't do anything about it.

The hotel industry's successful counterattack shows that Lin Haoran is not invincible in market competition. We can start from these loopholes and gradually erode his market share.

I believe that businessmen throughout Hong Kong do not want to see Lin Haoran monopolize every industry. We can partner with others in the hotel industry, and the same applies to other industries!

Laurence Kadoorie smiled and said, "In the past two days, the Peninsula Hotel's performance has rebounded again, with the occupancy rate increasing from 70% to around 85%. Although it still hasn't reached the previous stable occupancy rate of over 90%, it's a good start. However, we can't be too optimistic. Lin Haoran has always liked to do things unexpectedly."

Henry Keswick frowned and said, "Our Jardine Matheson firm is trying to make another offer to acquire Raffles Holdings in Singapore, and we are offering a very attractive price that is much higher than the market price."

Although they rejected my acquisition offer before, they said they would consider it if it was $1.5 million. I agreed to that price this time, but for some reason, they didn't agree immediately. So I suspect there might be some changes involved.

I had someone inquire about it, and I heard that Simon Murray of Hongkong Land Group was in Singapore again yesterday. If the Raffles Hotel is really acquired by Mandarin Oriental, their strength will increase significantly.

What they least want to see right now is that Lin Haoran's strength has increased again.

Although the Singapore market has little to do with Lee Ka Shing and Roland Kadoorie for the time being, they value the Hong Kong market more.

However, a company is a whole. The successful expansion of Mandarin Oriental Hotels in overseas markets naturally translates into an increase in the company's strength.

Therefore, those present became somewhat uneasy upon hearing this.

Henry Keswick's words instantly froze the previously smug atmosphere in the room.

Brown's wine glass froze in mid-air, and the smile on his face gradually stiffened.

Standard Chartered Bank's market share loss in Hong Kong has gradually stopped. However, due to the decline in business across various industries, companies like Cheung Kong Holdings and Hutchison Whampoa have seen a decrease in their cash flow with banks, which has also affected the business performance of Standard Chartered Bank and HSBC Bank to some extent.

This is why Brown is now so keen on uniting with other financial groups to secretly oppose Lin Haoran.

"Raffles Holdings has not announced the sale yet, and besides, hasn't Simon Murray been negotiating with them for two months without reaching an agreement? So it's unlikely that a deal will be reached so quickly. However, it seems we need to speed things up."

"Mr. Henry, how about we, Hutchison Whampoa and your Jardine Matheson, jointly launch a takeover bid for Raffles Holdings? What do you think? Singapore might be more lenient, perhaps out of consideration for both of us, since they've invited me to conduct market research in Singapore on several occasions before," Li Jiacheng said at this point.

He doesn't have much available funds, but Hutchison Whampoa has plenty!
Moreover, he did indeed have his eye on Raffles Holdings.

The Raffles Hotel is comparable to the Peninsula Hotel in Hong Kong.

If the Peninsula Hotel hadn't been a non-sale property of Laurence Kadoorie, he might have wanted to acquire it.

Now that the Raffles Hotel is such a coveted property, he naturally wouldn't want to let it slip away easily.

Brown's eyes lit up, and he laughed, "Mr. Li's suggestion is brilliant! With Jardine Matheson and Hutchison Whampoa joining forces, our chances of winning will definitely increase significantly. This way, Standard Chartered Bank can also participate in the negotiations, and we also have a certain market in Singapore."

If the three of us step in together, and even if Mr. Kadoorie joins in, they'll have to give us face. In this way, we can intercept Raffles Holdings before Mandarin Oriental Hotel Group, ruining Lin Haoran's overseas expansion plan. This would be a huge blow to them in the hotel industry.

With such a successful example, it will be much easier for us to persuade more Hong Kong businesses to join the anti-government alliance. Right now, Lin Haoran has too many allies in Hong Kong, making it difficult for us to truly deal with him. But once Lin Haoran becomes public enemy number one in Hong Kong, dealing with him will be a piece of cake.”

These were their goals: to unite all of Hong Kong against Lin Haoran and let this rising business tycoon experience the taste of being besieged.

Laurence Kadoorie shook his head and said, "Raffles Hotel is out of the question, I'm not interested for now."

He only wants to stay in Hong Kong and isn't really interested in overseas markets.

CLP Power is the foundation of the Kadoorie family. Although he hopes to diversify his businesses, his lack of understanding of overseas markets makes him hesitant to spend too much money venturing into them.

Seeing this, Brown immediately changed the subject: "In that case, let's proceed as planned, Mr. Henry, Mr. Lee. I suggest we immediately assemble a joint negotiation team and fly to Singapore tomorrow."

A glint flashed in Li Jiacheng's eyes: "That suits me perfectly. The Hong Kong real estate market has been lukewarm for the past six months. The prospects of the Singapore market are no worse than those of Hong Kong. I was just planning to go to Singapore to investigate the market."

“Alright, it’s settled then. We’ll leave the other industries alone for now. We have plenty of time. We’ll dismantle Lin Haoran’s business empire step by step.” Henry Keswick raised his glass, a cold glint in his eyes.

He hated Lin Haoran to the core, so if Lin Haoran suffered heavy losses, it would be good news for him.

After losing the Hong Kong market, Jardine Matheson lost at least 40% of its wealth, all thanks to Lin Haoran.

At this moment, no one present knew that Raffles Holdings S.A. had already changed hands.

This deal just hasn't been announced yet.

If they knew, they probably wouldn't be laughing right now.

“In that case, I’ll have someone arrange the plane tickets, and we’ll head to Singapore together tomorrow morning,” Brown said with a smile.

They couldn't wait to snatch the Raffles Hotel and humiliate Lin Haoran.

……

At the Kang Le Building, Cui Zilong went back to the Oriental Press Group, while Ma Shimin went to the Mandarin Oriental Hotel Group to handle the merger of Raffles Hotels and Swissôtel under Raffles Holdings.

Lin Haoran first went to the office of Galaxy Securities to learn about the latest situation regarding the acquisition of Hutchison Whampoa and Cheung Kong Holdings shares from Dai Shi.

In order to avoid being detected by Li Jiacheng's subordinates, Galaxy Securities acquired shares at a very slow pace.

Lin Haoran wasn't in a hurry about this.

He also knew that achieving his goal would be quite difficult.

Therefore, patience is definitely necessary.

Anyway, he's determined to get Hutchison Whampoa, and Li Ka-shing can't stop him!

After learning about it, Lin Haoran went back to his office.

Sitting in his office, he took out a phone book and started looking up names.

Soon, a name caught his eye.

Liang Zhonghao, the major shareholder of Xiangjiang Hotel!
As a member of the Hong Kong Chinese Chamber of Commerce, Lin Haoran has the contact information of all members of the Chamber.

His fingers lightly traced the names in the phone book, a meaningful smile appearing on his lips.

“Liang Zhonghao…” Lin Haoran murmured the name, a glint of light flashing in his eyes.

As the parent company of The Peninsula Hong Kong, Xiangjiang Grand Hotel has always held an important position in the high-end hotel market in Hong Kong, which is exactly the part that Mandarin Oriental Hotel Group needs to fill.

If Mandarin Oriental Hotels Group can acquire Hong Kong Grand Hotel Company, then Mandarin Oriental's market share in Hong Kong's high-end hotel market will exceed 50%, completely changing the industry landscape.

In the future, Hong Kong's economy will become stronger and stronger, the tourism industry will flourish, and the prospects for the high-end hotel market are limitless.

Now is the perfect time to acquire Xiangjiang Hotel.

The call was connected quickly.

"Hello? Who is this?" A middle-aged man's voice came from the other end of the phone.

"Mr. Liang, hello, I'm Lin Haoran. Hope I haven't bothered you?" Lin Haoran said with a hearty laugh.

He and Liang Zhonghao had only met a few times and exchanged greetings; they weren't even friends.

It was indeed a bit abrupt to contact him so suddenly.

However, to achieve one's goals, contacting the other party in person is clearly the most sincere approach.

He was confident he could persuade them, because the Liang family had never had much interest in the hotel industry.

"Mr. Lin from Landmark Group?" Liang Zhonghao on the other end of the phone was clearly taken aback for a moment, then his tone became cautious. "I've heard so much about you, Mr. Lin. May I ask what brings you here?"

Although both men are big names in Hong Kong's business world, they don't really have much interaction.

It's not surprising that Liang Zhonghao found this phone call puzzling.

"I would like to invite Mr. Liang to a gathering. I wonder if Mr. Liang would do me the honor?" Lin Haoran said with a smile.

Without any hesitation, the other party replied directly, "Since Mr. Lin has invited me, it is my honor. The time and place are up to Mr. Lin."

"In that case, Mr. Liang, how about coming to my villa on Shi Xun Road this evening? You can have dinner there." Lin Haoran spoke casually, as if he were chatting with a very good friend.

Inviting them to his home wasn't just about showing more sincerity; more importantly, he didn't want the matter to be discovered. Both Lin Haoran and Liang Zhonghao were quite well-known in Hong Kong.

If they choose to meet at the Connaught Building or elsewhere, it would be easy for others to spot them and for word to reach Laurence Kadoorie's ears.

However, Shi Xundao was different.

In Hong Kong's top-tier villa districts like Shi Xun Road, there are naturally few people, so Liang Zhonghao doesn't attract as much attention as Lin Haoran.

Therefore, meeting at the villa on Shi Xun Road is the safest option.

“Alright, then I’ll trouble you, Mr. Lin.” Liang Zhonghao readily agreed, but his tone still carried a hint of doubt.

Although he is now the largest shareholder of the Xiangjiang Hotel, holding significantly more shares than the Kadoorie family.

However, he didn't care much about the hotel industry, instead focusing his energy on the real estate sector.

For this reason, Laurence Kadoorie would never proactively contact him regarding hotel industry decisions, at most mentioning it at a board meeting.

Xiangjiang Hotel has not held a board meeting for more than two months.

Therefore, at this moment, Liang Zhonghao did not associate Lin Haoran with the Xiangjiang Hotel at all.

Although he didn't understand why this famous Hong Kong tycoon wanted to see him, Liang Zhonghao thought it was a good thing.

After all, Lin Haoran is now not only a business tycoon but also a financial overlord, and he wants to build a good relationship with him.

However, he was not quite qualified in the past, so he rarely had the opportunity to develop a close relationship with Lin Haoran.

After hanging up the phone, Lin Haoran immediately dialed the housekeeper's number: "We have distinguished guests tonight. Prepare some of your signature dishes. Also, bring out my treasured bottle of 1945 Romanée-Conti."

After making the appointment, Lin Haoran had no desire to stay in the Kang Le Building any longer.

He went directly back to the Shi Xun Road villa with his bodyguards.

Before we knew it, it was six o'clock in the evening.

Suddenly, a car horn sounded outside.

The visitor was none other than Mr. Liang Zhonghao, the major shareholder of Xiangjiang Hotel.

Lin Haoran went out to greet them personally, and a black Rolls-Royce slowly drove into the villa gate.

The car door opened, and a man in his fifties, dressed in a dark gray suit, stepped out from the back seat. It was Liang Zhonghao himself.

"Mr. Liang, welcome to my humble abode." Lin Haoran greeted him with a smile and extended his hand.

Liang Zhonghao quickly grasped Lin Haoran's hand, his smile revealing a hint of flattery: "Mr. Lin, you're too kind. It's my honor to be a guest at your home."

After exchanging a few pleasantries, Lin Haoran led Liang Zhonghao into the villa.

In the spacious living room, the butler had already prepared tea and refreshments.

"Mr. Liang, please have a seat," Lin Haoran gestured. "Have some tea first; dinner will be ready soon."

Liang Zhonghao looked around and couldn't help but sigh, "Lin Sheng's residence is truly excellent, with a wide view and superb feng shui."

Neither of them rushed to get to the point.

Although Liang Zhonghao was curious about why Lin Haoran had come to see him, he didn't ask since Lin Haoran hadn't said anything.

A dozen minutes later, at Lin Haoran's invitation, Lin Haoran moved to the dining room and they had a sumptuous dinner together.

At dinner, Leung Chung-ho praised and complimented Lam Ho-yin's business achievements over the past three years, while Lam Ho-yin expressed his admiration for Leung Chung-ho's achievements in the Hong Kong real estate industry.

As the two exchanged toasts, the atmosphere gradually warmed up.

After a few rounds of drinks, Lin Haoran put down his glass, and the two moved to the study on the first floor.

Lin Haoran personally brewed the tea, and Liang Zhonghao looked around the study without speaking first.

He knew that the other party's purpose in contacting him was about to be revealed.

Lin Haoran handed a cup of fragrant Longjing tea to Liang Zhonghao and said with a smile, "Mr. Liang, to be honest, the reason I invited you here today is to discuss a win-win business deal."

Liang Zhonghao took the teacup, a glint of shrewdness flashing in his eyes: "Mr. Lin, please speak."

“I want to acquire your shares in the Xiangjiang Hotel.” Lin Haoran looked directly into Liang Zhonghao’s eyes, his tone firm.

Liang Zhonghao's hand paused slightly, and the tea almost spilled.

He slowly put down his teacup and said in a deep voice, "Mr. Lin, you have quite the grand gesture. However, I have no intention of selling my shares in the Xiangjiang Hotel for the time being."

He was indeed surprised; he hadn't expected that the other party would contact him about this matter.

“Mr. Leung holds 34% of the shares, making him the largest shareholder,” Lin Haoran said unhurriedly. “Moreover, as far as I know, you’ve been experiencing some cash flow problems with your real estate project in Kowloon Tong recently.”

Liang Zhonghao's expression changed slightly, then he smiled wryly and said, "Mr. Lin is indeed well-informed. However, I do not have any plans to sell my shares in Xiangjiang Hotel for the time being. Although cash flow is a bit tight, it is not a problem."

"I have something to say, and I hope Mr. Liang won't tell anyone, okay?" Lin Haoran said with a slight smile.

"Please rest assured, Mr. Lin, I am not a gossip. Since you have given me this instruction, I will naturally not tell anyone!" Liang Zhonghao said solemnly.

"In my opinion, a real estate winter is coming to Hong Kong. If Mr. Liang trusts me, he can start to reduce his investment in the real estate industry!" Lin Haoran smiled slightly.

Upon hearing this, Liang Zhonghao's heart stirred, and he asked, "What evidence does Mr. Lin have?"

He also knew that Lin Haoran's companies had reduced their investment in the real estate industry in the past year, especially Hongkong Land Group, which had sold off nearly half of its real estate projects.

He took over a few of the projects.

However, Lin Haoran's public statement was that due to insufficient funds and excessive debt from the acquisition of Zhidi Group, he had to sell off some of the real estate projects, which everyone believed at the time.

However, Lin Haoran did not show any signs of financial difficulties afterward, and now he has even acquired Hengsheng Bank.

Therefore, Leung Chung-ho actually suspected that Lam Ho-yin had long since lost faith in Hong Kong's real estate industry.

In addition, the development of Hong Kong's real estate industry has indeed slowed down in the past six months. Although housing prices have been barely maintained, there are prices but no transactions. As a veteran real estate professional, Leung Chung-ho is also somewhat sensitive to this.

However, the real estate crisis has not yet erupted, so many people in Hong Kong's real estate industry still believe that this situation is only temporary. This includes Leung Chung-ho.

"As a real estate tycoon, Mr. Leung should also know that in the past two years, the newly started building area in Hong Kong has increased by more than 50% year-on-year, far exceeding the actual demand brought about by population growth."

At the same time, there is also an oversupply of commercial real estate such as office buildings and shopping malls. This year, the vacancy rate of Grade A office buildings in Hong Kong has quietly risen to 8%, while two years ago, this figure was only 5%!

Another crucial figure is that Hong Kong's unemployment rate has risen from 3.5% last year to 4.5% in the past year. These figures are not just something I made up; they are published by the government, and I think Mr. Leung should be aware of them as well.

Rising bank interest rates have led to a sharp increase in monthly mortgage payments for homebuyers, raising the risk of default and reducing residents' debt repayment capacity, further weakening housing demand.

Another major factor is the ongoing negotiations regarding the sovereignty of Hong Kong. There is too much uncertainty surrounding this issue, leading many wealthy individuals to accelerate the sale of their properties and emigrate, resulting in a gradual increase in the size of the secondary housing market, while the number of buyers remains limited.

With all these factors combined, the Hong Kong property market is at a dangerous tipping point. Lin Haoran picked up his teacup, took a small sip, and smiled at Liang Zhonghao.

The reason he brought this up was because the other party was currently in charge of the real estate business under the Xiangjiang Hotel. If he couldn't convince the other party to see the crisis in the real estate market, it would be difficult to persuade Liang Zhonghao to make the decision to sell his shares in the Xiangjiang Hotel.

After listening to Lin Haoran's analysis, Liang Zhonghao's forehead was already covered in fine beads of sweat.

As a seasoned real estate developer, he understood the seriousness of these figures better than anyone else.

I just kept hoping for the best and was unwilling to face reality.

Most importantly, many people have already invested in the real estate industry. Even if they can see that the development of the real estate industry has slowed down recently, it is not something they can just withdraw from as they wish.

Liang Zhonghao frowned, his fingers tapping unconsciously on the table: "Lin Sheng's analysis is indeed insightful. No wonder he started planning a year ago. I admire your foresight. However, Hong Kong has limited land and a large population, so in the long run..."

“In the long run, there will certainly be a recovery,” Lin Haoran interrupted, “but the short-term downturn will last at least three years. Mr. Liang, if you continue to invest in your several large projects, you may face a crisis of broken capital chains.”

Silence fell over the study for a moment.

"If that's the case, then why would Mr. Lin want to acquire my shares in the Xiangjiang Hotel?" Liang Zhonghao looked up and asked Lin Haoran directly.

"To be honest, what I'm interested in is the hotel business of Hong Kong Grand Hotel, especially the Peninsula Hotel under Hong Kong Grand Hotel. Mr. Liang should also know that my Hong Kong Land Group's Mandarin Oriental Hotel Group is a well-known luxury hotel group in Hong Kong, and coincidentally, I also value the Peninsula Hotel's position in Hong Kong's luxury hotel industry."

Although the real estate business under Xiangjiang Hotel is also facing difficulties now, for me, this difficulty is not too great and I can bear it. Therefore, I suggest that Mr. Liang cash out now to obtain sufficient cash flow. Under normal circumstances, it would not be easy for Mr. Liang to sell so many shares, but I can take them all at once! Lin Haoran smiled slightly.

Even if Leung Chung-ho doesn't sell now, he will in a few years, which will trigger a battle to protect the Hong Kong Grand Hotel. Lawrence Kadoorie paid a considerable price to save the Hong Kong Grand Hotel.

Lin Haoran's early move is aimed at seizing control of the company before the Kadoorie family realizes the significant risks of having someone else as the major shareholder.

(End of this chapter)