Hong Kong's one or four-star hotels cut prices after occupancy plummeted
Hong Kong's tourism industry has been hit hard by the continuing violence caused by the practice storm, which has led to a dismal business in the hotel industry. According to Hong Kong media, the Grand View Hotel on Kimberley Road, Tsimshatsui, has recently been sold for about HK $4.3 billion, a 28.4% decrease from the original intention price of about HK $6 billion. In addition, a listed real estate company has also recently sold its hotel properties, but the transaction price is also not ideal.
According to the Hong Kong Immigration Department, between September 29 and October 6, the number of inbound tourists dropped sharply, recording only about 2.64 million, down 31% compared with the same period last year. Yao Sirong, a member of the tourism industry of the Legislative Council of Hong Kong SAR, previously told the media that the overall occupancy rate of Hong Kong hotels during the National Day was only 50%, and only 20% of hotels in the core area were impacted by violence.
Under the market condition of poor business in the hotel industry, there are hotels for sale at a reduced price. According to Hong Kong media, the land registry of Hong Kong reported that the hotel was registered for sale in mid September, with a transaction price of HK $4295.7 million and the buyer being Yueming Holdings Limited. It is understood that the initial offer price for the property was about HK $6 billion. In this transaction, the transaction price was about HK $1.7 billion lower than the intention price, a decrease of 28.4%.
On October 11, jinluntiandi, a real estate development company, announced that its wholly-owned subsidiary, jinluncuiyu Co., Ltd., had sold Hong Kong West Kowloon Serie hotel for HK $515 million. The information shows that the West Kowloon Serie hotel is located at 48 Yanjia street, Tai Kok Tsui, Kowloon, Hong Kong, with a total area of about 35804 square feet and 141 rooms. It is reported that in 2017, the price of the property purchased by jinluntiandi was HK $450 million, i.e. only appreciated by about 14% during the period.
Xingsheng, a real estate company, announced on October 13 that it would invest about HK $741 million to acquire the Hong Kong xinleting Shangyuan Apartment Hotel held by Singapore CapitaLand group in Hong Kong. The property, located at 29 Suzhou hang Street, Sheung Wan, Hong Kong, is a 28 story service residential building with 55 rooms and a total floor area of 37933 square feet. According to the data, the property was purchased by CapitaLand group in 2014 with HK $580 million. In terms of transaction price, CapitaLand group held the goods for five years, only appreciated by about 28%.