The trend and turn the hotel to change commercial buildings

Property use in response to different market conditions or changes in the early commercial buildings converted into a hotel, the current tourism is not as good as before, plus a Xiamen rental rate and rent continued to improve, the hotel turn commercial buildings, to meet the “escape” Central company.

All property wins in the high flexibility, the owners at different times in different market conditions, but also try to change the use in order to obtain a better return, while reflecting the latest property market situation.

The hotel industry is in short supply

For example, many years ago, free travel passenger consumption, visitors to Hong Kong, the hotel room in short supply, then 3 and 4 star hotel, frequently priced at 1,500 to 2,000 yuan per night, to attract investors to pay attention, Hotel. Today, a lot of Yau Tsim Mong, Wan Chai District 3 star hotel, it is converted from commercial buildings.

However, this situation has changed nearly a year, from the Causeway Bay area can be found in the new situation, is the 5 star hotel owners, give up the hotel and turn to commercial buildings. The Crowne Plaza, No. 8, Leighton Road, held by Java (00251), covers an area of ​​about 11,000 square feet and has been in business for only 8 years since 2009. The owners have submitted applications to the Town Planning Board earlier for office, shops and Restaurants and other uses, plot ratio of 15 times, plans to rebuild into a 22-storey building, the total floor of about 161,000 square feet.

It is necessary to mention that the Oriental International announced that the sale of Excelsior Hotel, the property in February 2015 by the Buildings Department approved the building plans, quasi-redevelopment of a 26-storey commercial buildings, can build a floor area of ​​about 68.4 Million square feet, is expected to purchase new buyers to buy a larger opportunity, the market valuation of 27 billion yuan, the floor price of about 40,000 yuan. In addition, earlier this year, capital strategy to 1.7 billion, selling Causeway Bay JIA hotel, the purchase of new buyers is not operating, but demolition to rebuild into commercial buildings.

Retail case of winter commercial buildings rent anti-ideal

Hotel to commercial buildings, is reflected in how the owners forecast retail and office demand for future trends. The local retail industry retreated for 24 consecutive months and experienced retail sales in the first quarter of this year after two years of winter. For the first time in two years, tourists have rebounded. However, retail short-term return to the previous peak, the hotel room can return to high prices, is unknown.

On the contrary, commercial rents trend is ideal, this year rose significantly, the vacancy rate fell to low, all due to the locomotive in the peak of a peak. According to Jones Lang LaSalle’s latest figures, commercial rents rose 3.6% in the second quarter to 116.4 yuan per foot, to return to the pre-2008 financial turmoil before the record high, this phenomenon all due to Chinese institutions to come to Hong Kong rent office. According to statistics, this year’s sub-season more than 8 percent of the Central Mansion rent, are from the Chinese-funded institutions, as the biggest driving force for rent increases.

The gap between office rents in Central and Hong Kong Island’s other commercial districts has been expanded to 58%, so that more multinational companies can find commercial buildings outside Central to save rental costs and explain why this year’s Causeway Bay and Hong Kong Island East and other business districts The To Causeway Bay, for example, the construction of the Lee Garden 3, more than half of the floor has been leased out, which rented the top duplex units of foreign banks, it is now rented in Central commercial buildings, I believe that due to high rent and relocation.

The map shows that the vacancy rates in Wan Chai and Causeway Bay and Hong Kong Island are both low and the rents in the two districts are active. This is what Central Central’s rent effect is driven. The prospects for the sale of commercial buildings in the Central District is still no ups and downs, so the owners also in response to the trend of the hotel to commercial buildings, to meet the “escape” Central business.