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Historic Building In Line for $223M Hotel Redo

PARIS-The deal is still tentative between Qatari Diar and Hongkong and Shanghai Hotels. If it works out, a Peninsula flag will fly over a historic building near the l'Arc de Triomphe.

By Connie Gore | Updated on July 15, 2008

PARIS-Qatari Diar Real Estate Investment Co. has signed a tentative agreement with Hongkong and Shanghai Hotels Ltd. to redevelop a historic property into a 250-key Peninsula Hotel. The redevelopment, estimated at 140 million euros [$222.9 million], is situated one block from the l’Arc de Triomphe and Champs-Elysees.

Under the pact, Qatari Diar will sell a 20% stake to the Hong Kong-based hotel operating company, which didn’t respond to an interview request by deadline. Internet research shows that construction could begin as early as third quarter 2009 to convert the six-story building at 19 Avenue Kleber, which was UNESCO’s headquarters until 1958, into the 10th Peninsula Hotel in the world. Qatari reportedly paid nearly 460 million euros [$732.4 million] to France for the state building, now occupied by the Centre International de Conferences.

Built in 1907, the former Majestic Hotel was closed in 1936 and taken over by the state. During World War II, it housed occupying German troops and then became UNESCO’s headquarters before transitioning to the French Ministry of Foreign Affairs.

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