Langham Hospitality prices IPO at mid-point for a 6% yield

The hotel-focused trust, which is being spun off from property developer Great Eagle, raises $549 million amid strong demand from yield-hungry institutions.
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Langham's Eaton Hotel in Hong Kong
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<div style="text-align: left;"> Langham's Eaton Hotel in Hong Kong </div>

Langham Hospitality Investments, the hotel-focused trust that is being spun off from Hong Kong property developer and investment company Great Eagle Holdings, has raised HK$4.26 billion $549 million after pricing its initial public offering at the mid-point.

At a final price of HK$5 per unit, the trust will deliver a yield of 6.04% to investors this year, rising to 6.4% for 2014, according to the average syndicate forecast. This means it is offering a yield premium to other key hotel-focused real estate investment trusts in Singapore and Hong Kong, even though syndicate analysts argue that the quality of its assets suggests it ought to be the other way...

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