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Two Hong Kong hotels sell for US$295 million, as cash-rich investors bet on hospitality sector rebound once borders reopen
- Shun Ho Construction buys Bay Bridge Lifestyle Retreat in largest hotel transaction by a local buyer since December 2018
- Weave Living acquires the former Grand City Hotel from Magnificent Hotel for HK$900 million
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Two hotels changed hands in deals worth more than HK$2.3 billion (US$295 million) in Hong Kong on Wednesday, as cash-rich investors swooped in to pick up assets from the city’s slumping hospitality industry, betting on the sector improving once Covid-19 has been contained and the city’s borders have been reopened.
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Shun Ho Construction (Holdings), the wholly-owned subsidiary of Hong Kong-listed Magnificent Hotel Investments, has agreed to buy Bay Bridge Lifestyle Retreat, a 435-room waterfront hotel in the western New Territories overlooking Tsing Ma Bridge, for HK$1.42 billion, according to a filing made to the Hong Kong stock exchange at noon on Wednesday.
Weave Living, a Hong Kong-based shared-living spaces operator, said later in the afternoon that it had acquired the former Grand City Hotel in Sai Ying Pun from Magnificent Hotel for HK$900 million, in partnership with Angelo Gordon, a global privately held investment firm.
The Bay Bridge deal is the largest hotel transaction by a local buyer since December 2018.
“We are the first local firm to buy a hotel property for such a large amount of money. It shows our confidence in Hong Kong’s tourism industry, which is bound to recover after the border with mainland China reopens,” William Cheng, Magnificent Hotel’s chairman, told the South China Morning Post.
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