Owners of Hong Kong’s Connaught hotel slash sale price by 40% amid property downturn

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Uploaded: 2024-09-03T12:16:09.000Z
Duration: 3 min 23 s
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The owners of the 52-room, four-star hotel in Sai Ying Pun have lowered the asking price to HK$600 million from HK$1 billion previously

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The owners of Connaught Hotel in Sai Yin Pun have lowered the asking price after failing to find a buyer. Photo: The Connaught

Cheryl Arcibal

Published: 8:16pm, 3 Sep 2024

The worsening slump in Hong Kong’s property market is pushing owners to deepen the discounts of assets already on the market.

The Connaught, a 29-storey hotel in Sai Ying Pun, adjoining the core business zone of Central, is being offered at a 40 per cent discount to its initial asking price.

The owners of the 52-room, four-star hotel with a gross floor area of 41,705 sq ft have dropped the price to HK$600 million (US$77 million) from HK$1 billion previously, according to a statement from Colliers and Knight Frank, the joint agents for the sale.

The asset is just one of many that have been put for auction by landlords and investors in recent months. It is owned by a joint venture of Hong Kong-based Hanison Construction and New York-based private equity real estate specialist Angelo Gordon, sources said.

On Monday, JLL said that it has been appointed as the sole agent for the sale of five en-bloc industrial buildings in Sai Kung with a gross floor area of 383,579 sq ft. The buildings are valued at HK$950 million. The property “holds significant potential for conversion into a high-end senior living community”, according to JLL.

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Mainland Chinese social media Xiaohongshu highlights unlikely tourism spots in Hong Kong

In the first half of the year, sales of distressed property in Hong Kong surged to about three quarters from the typical 10 per cent of such levels in previous years, according to an estimate by CBRE. With interest rates at a 23-year high, asset owners have found it increasingly difficult to service debt, the property consultancy said.