Hotel investments in HK swells 70.5% in H122
The market reported $3.9b (US$504m) total sales volume.
Hong Kong’s hotel investments surged to 70.5% in the first half (H1) of 2022, marking the strong demand for the hotel sector, JLL said.
Total hotel sales volume went up from $2.3b (US$295.5m) in the second half (H2) of 2021 to $3.9b (US$504m) to H1 2022, the property research firm added.
Jonathan Law, vice president, JLL Hotels & Hospitality Group, said investors in the city are choosing hotels to convert into co-living spaces as they are eyeing assets that are highly accessible to mass transport, which will attract young professionals looking for convenient places to stay.
He added that hotel transactions in Kowloon reported the most active investment as prices are cheaper.
“However, price per sq ft should not be the only metric when looking at hotels, as the efficiency of floor plates will impact the ability to generate returns from the asset, as well as management terms and facilities provided," he said.
$1 = US$0.13