Eight Hong Kong hotels are converting to office space
But hotels in “non-core” areas -- where office rents are lower -- could miss out on an expected run-up in tourist arrivals if they convert, Colliers said.
Eight hotels are now being refurbished, redeveloped or on the drawing board for the shift, representing more than 2,000 hotel rooms, according to a Colliers International report released on Wednesday.
The properties could rake in more in office rent than what they fetch for hotel rooms.
But hotels in “non-core” areas -- where office rents are lower -- could miss out on an expected run-up in tourist arrivals if they convert, a misstep that occurred in 2009 when a similar hotel-to-office rush left some hotel owners worse off, Colliers said.
Of the eight hotels, four have already begun converting or are knocking down their property to make way for redevelopment: Hotel LKF by Rhombus in Central, which has 95 rooms in 92,460 square feet, is being converted for use by WeWork. 338 Apartment in Central is being reworked for small businesses. King’s Hotel in Wan Chai will be remade into standard offices. And J Plus Hotel has already been torn down to be redeveloped into offices.
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