Hong Kong hotel market most sought-after by investors: CBRE
Investors are converting hotel assets into co-living spaces.
Investors in Hong Kong are seeking value-added opportunities in the hotel industry as Asia Pacific hotel investment grew by 46% on a yearly basis, commercial real estate firm, CBRE, said.
For trends in the Hong Kong hotel sector, CBRE noted that a number of investors are turning hotel assets into co-living spaces.
In the past six months, foreign funds acquired Butterfly on Prat, Hotel sáv Hong Kong and Travelodge Central Hollywood Road, with plans to incorporate co-living or student accommodation elements in the redevelopment.
Meanwhile, the Town Planning Board received the application to transform the ibis Central and Sheung Wan into a residential building.
Even as Hong Kong experienced the fifth wave of infections, the hotel industry had not seen any significant distressed assets.
Based on its 2022 Asia Pacific Investor Intentions Survey, CBRE revealed that the number of investors expecting a discount on hotel assets declined from 99% in 2021 to 78% this year, which signals an improvement in asset price.