Pioneer Global Group buys remaining stake in InterContinental Grand Stanford

Hong Kong-based firm Pioneer Global Group will invest $118.4 million to acquire an additional 20-percent stake in Kowloon City’s InterContinental Grand Stanford Hotel.

Owned by Gaw Capital, the family-owned-and-operated firm will also own 30 percent of the company holding the 503-room hotel, according to Pioneer’s statement. The real estate investment firm’s initial acquisition of this Tsim Sha Tsui-area hotel in July 2015 has been recorded as one of the company’s largest single asset transactions to date.

Pioneer and Gaw Capital’s involvement in the Supreme Key investor consortium with Korean sovereign wealth fund KIC landed them ownership of the InterContinental for $938 million. The firm is planning 18 months of renovations to the 570-room property, which are expected to begin this year.

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


Situated on the Victoria Harbor, the Grand Stanford’s amenities include four dining venues, an outdoor heated pool, a 24-hour fitness center and three meeting facilities. Former owner InterContinental Hotel Group will earn a profit of around $700 million on the hotel, which it owned since 2001. IHG expects to manage the hotel for another 67 years, having signed a 37-year management contract and three 10-year extension rights worth $8 million per year.

The sale of the InterContinental comes amidst IHG’s adoption of an “asset-light policy” to focus on operating hotels. This is merely one property in the rapidly increasing list of hotels Gaw Capital Partners is buying up. The private-equity firm reportedly closed a $1.3-billion bid for its Gaw Capital Real Estate Fund V Asian investment vehicle a month ago. Just over a month before purchasing the Kowloon waterfront hotel, Gaw led a conglomerate of Asian investors to acquire the 76-story Columbia Center office tower in Seattle for $725 million.

According to its website, Gaw Capital has six projects planned in Asia and the U.S., with locations including Bangkok, Beijing, Macau and San Francisco.  

Suggested Articles

The company's main markets are still substantially affected by the measures rolled out to combat the COVID-19 health crisis.

Revenue per available room and occupancy increased over Q2, but uncertainty around the industry’s recovery remains.

The integration aims to provide hoteliers with seamless and complete visibility over group, catering and event sales performance activity.