Core area hotel project renovation commercial buildings into the wind
Hotel industry at low tide, in contrast to strong demand for office space, to promote the hotel project for the development of commercial buildings, statistics in recent years, at least seven hotels to renovate commercial buildings, will bring more than 1.6 million square feet of floor. Analysis refers to the core area of the hotel to change business to increase.
Tourism Development Bureau data show that the total number of visitors last year fell by 4.5% year-on-year. In the first five months of this year, visitors increased by 3.2% over the same period last year. The overnight visitors also recorded a slight increase of 5.7%, but last year the average rent 3.7%, showing the hotel industry at low tide.
This year the hotel application for temporary record 1 case
Tourism prospects are uncertain, changes in passenger consumption patterns, the consortium of the hotel development is not optimistic. The number of applications for the Lands Department and the Town Planning Board has been reduced in recent years. Fourteen cases were recorded in 2014 and 2015 respectively. However, there were only one approved case last year and this year. In addition, the Town Planning Board will temporarily receive 1 hotel application this year, down 6% from last year’s 3 cases.
Hong Kong commercial buildings in recent years to attract Chinese enterprises to buy and lease, the Department of Estimates data show that the first five months of this year has risen 8.5%, the rent rose 2.3%, of which Central Murray Road, more than 50,000 square feet Yuan approved, a record high in Hong Kong, the developer of the core area of commercial buildings look more high-line, many consortium intends to turn the hotel to commercial development, seeking land appreciation and high rental returns.
Among them, the Crowne Plaza Causeway Bay, which opened for only eight years, has applied for the redevelopment of 22-storey commercial buildings for office, shops and restaurants for a wide range of applications, involving 161,000 sq ft of floor space. Intended to be converted into a silver-style commercial buildings. More than 40 years of history, more than 40 years of history Causeway Bay Excelsior Hotel, has been approved to build commercial buildings, the total floor of 684,000 square feet, due to land to enjoy the Harbor Harbor, the market valuation of up to 30 billion yuan.
Experts: the cost of conversion is significantly higher
Some of the consortia have also studied the transformation of commercial buildings and increased the commercial floor. They have prepared their hands in advance, including the Lai Dong Hin Hotel, which is purchased from Shun Ho Group (00253) at the beginning of the year. It is planned to refurbish the rent, but it means that it will be changed to mixed commercial development for several years.
In addition, the Yau Yau Tsuen Wan Ye Road site, west of the site to give up the hotel program, the City Planning Commission agreed to switch to commercial development. If more than one project to implement the commercial plan, it is estimated that can bring more than 1.6 million square feet of new floor.
Zhang Shengdian, director of the Urban Enterprise Valuation Department, said that the hotel industry has weakened and the rental returns have declined, so that the rate of return of funds has been slowed down. On the contrary, commercial buildings can be sold and rented, and the commercial combination is flexible and flexible. The headquarters of the Chinese and foreign-funded enterprises increased, the cost of refurbishment of commercial buildings is not high, it is estimated that the cost of about 1,000 yuan per foot, turn the appreciation of commercial buildings more significant.
He expects that the small and medium-sized hotels in Hong Kong in the second and third tier of Hong Kong will continue to apply in the future. However, the vacancy rate of commercial floor in the core area will be low and the hotel demand will be close to saturation. To enhance the value of the lot, The