Hong Kong is becoming a magnet for hotel investments after some investors snapped up assets on the cheap this year, banking on a recovery in tourism and shrinking room supply to brighten the industry outlook, according to property consultants.
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Investments in the sector could reach about HK$5 billion (US$637 million), an almost 50 per cent increase from 2024 after solid activity in the first quarter, according to Colliers. JLL forecasts hotel transactions to hit US$800 million.
“There is potential for that number to be significantly higher,” said Shaman Chellaram, senior director for Asia, valuation and advisory services at Colliers. “We expect hotel transaction volume to increase in the third and fourth quarters, with some outlier discussions taking place for larger assets.”
Hotel deals amounted to HK$2.82 billion last quarter, making up 45 per cent of the city’s commercial real estate transactions, according to data compiled by Colliers. It was the highest quarterly share on record, helped by distressed opportunities and demand.
This year’s biggest transactions included Nanyang Commercial Bank’s seizure of the 598-room Hotel Cozi Harbour View in Kwun Tong for HK$1.87 billion, the Airport Authority’s purchase of the 800-room Winland 800 Hotel in Tsing Yi for HK$765 million, and the HK$188 million deal for the 100-room MK Stay Hotel in Mong Kok.
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