Disney reaches deal on Hong Kong expansion
by Tom Walker | 26 Jun 2009
According to reports in local media, the government of Hong Kong and The Walt Disney Company have reached an agreement over the details of expanding Hong Kong Disneyland.
The park's two owners - the government holds a 57 per cent stake in the park while Disney owns 43 per cent - are understood to have agreed a financing deal believed to be worth around US903m (£551m 644m euro). Around half of that amount could be used to double the park in size.
Although an official announcement is not expected until the end of the month, news agency Reuters reported that while Disney is likely to fund the expansion, the government of Hong Kong will convert its loans to equity in order to maintain its majority share in the park.
Plans to expand the park were put on hold earlier this year after the Walt Disney Company announced in March that it had failed to reach a deal with the region's government over financing the work.
The 128-hectare (310-acre) resort is Disney's smallest park and includes 2,100 hotel rooms and a 28,000sq m (301,389sq ft) retail, dining and entertainment complex.
The park has failed to attract the crowds initially estimated since its opening in 2005, with annual attendance figures currently well below the target of 5.6 million guests.
According to reports in local media, the government of Hong Kong and The Walt Disney Company have reached an agreement over the details of expanding Hong Kong Disneyland. The park's two owners - the government holds a 57 per cent stake in the park while Disney owns 43 per cent - are understood to have agreed a financing deal believed to be worth around US903m (£551m 644m euro). Around half
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